Luckin Coffee Inc (LKNCY)

[food4thought]

Or you could view that a company that’s forced to be transparent and is on probation so to speak will be on their best behavior moving forward. If they are willing to settle fines levied, they clearly have a desired path forward.

Losing the trust of investors and institutions does not mean an end all for opportunists lurk in dark corners. If there is money to be made, there will be buyers of the stock. If the fundamentals align with the growth potential, their will be buyers of the stock. The story remains the same. Luckin is currently undervalued due to their indiscretions, not because they are fundamentally unsound. Most companies cook the books because they are trying to cover up losses and theft. Luckin cooked the books to show accelerated growth in hopes of creating a higher valuation thus increasing the share price. There is a difference. Also, the company willingly disclosed the fraud and has taken many measures to correct the negative stigma of the management team and become more transparent moving forward.