Luckin Coffee Inc (LKNCY)

[food4thought]

I’ll agree with “confuse the shit out of the shareholders” to stack their game of monopoly in their favor, but damn it’s hard to sit thru. It took almost a year to reassemble some confidence and rebuild the share price to a decent level, then kabaam, one day, one article, one declaration, and its obliterated.

Clearly the business model is sustainable. Clearly they have enough cash to deal with further settlements. What’s not clear is the reorganization. What happens to existing shareholders? They settled substantial fines only to end up filing bankruptcy!? That clearly makes no fiscal sense. Did not see this coming unless it’s part of a scheduled debt forgiveness plan that we were unaware of tied the JPL hearings and ultimate settlement.