Luckin Coffee Inc (LKNCY)

[Farmer_D]

I haven't seen anything from the company to warrant this drop. I have been hearing on Bloomberg someone (SEC?) is cracking down on Chinese stocks again. Maybe its that, or maybe China's relationship with Russia, I have no idea. I did see many people on stocktwits are also confused and have no answers.

FD

[ziggy7796]

Drop does not fit narrative??? Ziggy

Luckin Coffee Nears Major Milestone with Imminent Emergence From Bankruptcy

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by The Bamboo Works, Contributor

March 9, 2022 10:35 AM | 5 min read

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Key Takeaways:

Luckin Coffee said the liquidators handling its U.S. bankruptcy have formally filed to close the case after a recent settlement with holders of $460 million of its convertible notes

Development could pave the way for company to relist on the Nasdaq, though the U.S. securities regulator could face pressure to veto such a move

By Doug Young  
This is one liquid that China’s largest coffee purveyor won’t miss.
That’s the sentiment coming from Luckin Coffee Inc. (OTC:LKNCY), which has announced it is on the cusp of emerging from a prolonged bankruptcy liquidation following a year-long reorganization to put it back on solid financial footing. This particular development isn’t all that earth-shattering, as the company has been keeping everyone updated quite regularly on its efforts to return to financial health.

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Many believe the company’s ultimate goal is a return to the Nasdaq’s main board, where Luckin was briefly a favorite after it sold investors on its story of being a high-tech coffee purveyor that could challenge Starbucks (NASDAQ:SBUX) in the U.S. coffee giant’s second-largest market. But such a return could be difficult due to Luckin’s checkered history that got it kicked off the Nasdaq in June 2020, several months after it admitted to massive accounting fraud. But more on that later.
First, we’ll take a look at the latest announcement saying a Cayman Islands court has formally ordered an end to an ongoing liquidation of the company. In this case “liquidation” is probably a bit misleading, as it appears that true liquidation was never the actual goal and instead the company was working on an agreement to restructure the terms of $460 million worth of convertible bonds it previously issued.
It announced a completion of that restructuring in late January, and this latest announcement notes the Cayman Islands court officially accepted the deal on Feb. 25. Luckin added a court overseeing the bankruptcy in the U.S. also recognized the deal, and last Saturday the liquidators handling that matter filed a formal provision to officially close the case.
There’s no word if the U.S. court has officially accepted the request, but such a move seems almost guaranteed in light of its previous recognition of the settlement and the Cayman Islands cessation of the liquidation. In December 2020, the company also reached a separate settlement with the U.S. securities regulator that included its payment of a $180 million fine related to the fraud.
After all of those settlements and restructuring, the company is looking surprisingly strong with about 5 billion yuan ($792 million) in cash and cash equivalents in its coffers at the end of last September, according to its latest financial report for last year’s third quarter.
“The successful completion of the provisional liquidation is yet another positive step for Luckin Coffee, and has allowed us to significantly reduce our debt burden and improve the company’s capital structure,” said Chairman and CEO Guo Jinyi. “Operating from a position of financial strength, we are focused on executing our growth strategy and continuing to deliver industry-leading services and products to our customers and long-term value for our shareholders

[elcheepo]

I don't pay much attention to this stock, but what has fundamentally changed to cause it to dive so hard?
Is this a change to the companies outlook? or is this a play by the market manipulators?

[Farmer_D]

Guess I bought back in a couple days early. Oh well. :|

FD

[Bona Vista]

Cycle Where Are You????????
Haven't heard from you in Months, hope ALL is well.

[Bona Vista]

I believe we are getting real close to that moment, and when that occurs $20.00 should be an easy mark.

[elcheepo]

Can’t say, but why wait till that day as the minute they announce the shares will rocket up

[Bona Vista]

I agree, question I have is when will LUCKIN legally come out of bankruptcy.
I would think that once that occurs, the company can then submit application for relisting on an exchange once again.

[elcheepo]

buy now, at these cheap prices,.,, easy double or triple from here.

This is the going to make money

[Bona Vista]

Just curious, but would anyone like to offer their opinion as to the future outlook for LUCKIN.
After having gone through 2 years of problematic issues regarding its credibility, I personally believe LUCKIN has re-emerged as a viable company to be reckoned with.
Would NOT be surprised to see a $30.00 price by year's end,after holding this stock for years everyone still here deserves their reward.

[Bona Vista]

Looks as if LUCKIN is finally ending its bankruptcy, and begining its new foray back into a relisted company.
It will be only a matter of time when relisted, and future ERs are released LUCKIN should return to price levels before its fraud demise.

[Greenaccountingbean]

Case study https://analytics.wharton.upenn.edu/wp-content/uploads/2022/02/Luckin_Case_Study.pdf

[dealerschool2006]

The ticker $LKNCY mentioned in this article ...https://www.investopedia.com/department-of-justice-probing-short-sellers-5218273?utm_campaign=quote-yahoo&utm_source=yahoo&utm_medium=referral

[Bona Vista]

Yes it has been going UP/DOWN and sideways, however, I do believe without notice LKNCY will take off one day and NEVER come back DOWN.
It's NOT a bad idea to hold onto a few shares for the long-term, LKNCY is going HIGHER and no one knows when.

[Farmer_D]

I'm good with the ups/downs for a while. I'm just swing trading this now. I do hope it goes up for everyone though.

FD

[Bona Vista]

Will be interesting to see whether or NOT LKNCY can maintain moving HIGHER, or will it continue its up and down ride going nowhere???

[Farmer_D]

Well that is a good point. I forgot about that announcement a few days ago. Thanks for the reminder!

FD

[Smilin_B]

Why would they want to take the company private if they are trying to regain their listing here in the United States?

[Smilin_B]

Why is luckin coffee tanking?

[Farmer_D]

Hmmm, I wonder, and this has been mentioned by others in the past, if they will want to take the company private. This gives them the power to do so easily. I do not know if that would be in the best interest of the company though.

FD

[Farmer_D]

Well it looks like our shareholder votes don't matter since Centurium Capital owns over 50% of the shares. But, not like my few shares/votes count for much anyway. Curious to see where we go.

FD

[Bona Vista]

Cycle, where are you and hope ALL is well??

[Bona Vista]

Great News if true, hopefully, it is and we can all be rewarded for our patience and belief in LUCKIN throughout these turbulent times.
Good Luck to All!!!

[colorfullife88200]

Thats good news ! LK business is good and should be relisted. All bad things had happened in the past have passed , so relist and become a great company again. $55 in 2022 !

[surfer44]

This is not for the cautious investor..

Luckin Coffee plans to relist in U.S. two years after accounting fraud - FT
Wed, January 19, 2022, 8:54 AM
Jan 19 (Reuters) - Luckin Coffee is looking to relist its shares in the United States nearly two years after an accounting scandal, the Financial Times reported https://www.ft.com/content/f8327af5-5203-44fd-acc7-267c7b475fa7 on Wednesday, according to two sources familiar with the matter.

The company was delisted from the Nasdaq stock exchange in June 2020 after the Chinese coffee chain fabricated more than $300 million of its sales.

Luckin Coffee did not immediately respond to a Reuters request for comment.

(Reporting by Ananya Mariam Rajesh in Bengaluru; Editing by Krishna Chandra Eluri)

[surfer44]

Opened a starter position on "The Starbucks of China". We'll see.

Good Luck with Luckin Coffee....

[Farmer_D]

I don't have a position at the moment but am still watching. I've considered doing some swing trading on this one. Was thinking buy 8-9 range, sell 10+. I haven't done it yet though but it looks like I could have made some money in the past couple of months doing that.
I am still very curious how this play will be in the coming years as well but don't plan on a long hold here for me, at least not right now.

FD

[Bona Vista]

Good to hear from those who responded, happy to also know that we are still optimistic on LKNCY future.
Nice to see an up day when the market was horrible, hopefully, it can continue moving HIGHER.

[nicehit]

Here waiting for $$$$$. It should come in the 3rd Qtr unless China and/or Biden kill all economies!

[elcheepo]

Still here, Waiting for $50

[Bona Vista]

Is there anyone still here, or has everyone SOLD OUT and NO LONGER an investor in LKNCY.
Perhaps I'm the LAST man standing, if so I wish the best to ALL past believes.

[Bona Vista]

Hello to everyone, long time that I or anyone else posted anything in regards to LUCKIN.
Couldn't resist in BUYING more shares yesterday, NOT sure why the price has gone DOWN so much, but I do believe next year will be a positive one for this company.
I am sure there will be numerous NEWS RELEASES in the weeks and months to come, and I believe they will propel LUCKIN's share price to New HIGHS.
Good LUCK, and Happy HOLIDAY's to all.

[elcheepo]

You would be more right than wrong, as it looks like we are in a consolidation pattern for some time... and could continue.

if there is a fundamental change, it will change everything, but for now the technicals are showing steady as she goes.

[Smilin_B]

Your posts are like - - essentially useless

Don't you have your own opinion?

It will continue trading like what?

[Bona Vista]

Anyone care to share their thoughts, I believe LUCKIN will continue trading like this until next year.

[Bona Vista]

Just curious as to where anyone here believes LUCKIN price will be by year's end, personally I think somewhere around $16.00-$16.50 but NOT much HIGHER.

[Bona Vista]

Definitely LUCKIN is legit and will eventually relist, how long that will take is anyone's guess.
I do believe that once ALL legal matters are resolved, LUCKIN will then show a true price valuation which should be great.
I shall be HOLDING on till the very end, good luck to everyone who have been true believers.

[ice trader]

Must agree they might be worth looking at I am in for a small position.

[food4thought]

You really think Luckin is a ghost company out to simply screw shareholders?

A little DD will show you their store fronts, closures and expansion, SEC settlement, JPL proceedings, fines levied, executive transitions since the fraud, bond reactions, timelines and restrictions for class actions, growth and profitability projections, recent earnings release and guidance, and overall state of the company since the fraud was revealed. I could list dozens of more examples of why this isn’t a ghost company out to fleece existing share and bond holders. There is a process and execution of a JPL appointed timeline that needs to play out before Luckin’s true valuation will take hold. Share price will react accordingly and create a realistic market cap once they relist and institutions along with big board players enter the security. The current valuation is silly, but we’re OTC and manipulation runs rampant.

[ice trader]

WHAT DO I KNOW MAYBE THERE LEGIT NOW HOLDING NICELY.

[ice trader]

No available share structure I can find.
I cannot even find what there average shop looks like.
They have already fleeced thousands of us share holders. Hmmmmmmmm think
Before you buy this one at least do your dd.

[ice trader]

Buy Ford the have messed over a lot less people. Lol

[elcheepo]

HAHAHAHA... perfect..

Thanks

[CycleTrade]

[elcheepo]

Are you frikken kidding me? Do you not know a gift horse by looking in its mouth?
Jeesh!... If you don't take advantage of this buy opp, and I mean they just gave you a golden chalice on a platinum platter,,, then I don't know what you would like!

WOW... this is crazy time!

[Farmer_D]

Thank you, CycleTrade.

FD

[CycleTrade]

There is a list of criteria that needs to be met....but it is a "mix and match" list. Only a certain number of the overall list need be met. A better way to say it....They do not need to meet ALL criteria...just partial.

[Farmer_D]

I thought one of the criteria was to be profitable for a number of quarters, but again, I don't understand all the variations.

Thanks CycleTrade.

FD

[CycleTrade]

Just a quick FYI....

LKNCY has already met the criteria to be relisted.....all they needed was the financials to be reported. That's done now. All that is left is to drop Q3 on us.

[Farmer_D]

I thought the news was positive and the share price would have gone up a good amount. I'm surprised to see the share price activity through the day. If I read it correctly, it looks like they are closing and opening locations to achieve better profitability which is good. I'm not sure of all the rules that LKNCY will have to meet to be able to re-list on the NASDAQ. I've spent a little time looking at the requirements but there are so many variables, I don't really understand them.

FD