Luckin Coffee Inc (LKNCY)

[food4thought]

Amazing how a guy, me, could take on a substantial risk by becoming heavily invested in a decimated company/stock that has fought its way back thru major obstacles and hurdles, that has become focused and forward looking, that has been getting things in order and looking so good to this point with a finish line in sight, only to have what were previously nonexistent major regulations directly targeted upon them, thereby blowing up their progress and momentum, and creating more headwinds. Unreal.

This downward move has nothing to do with the recent run up and progress of the company, but rather, has everything to do with the CCP leverage being put on these China based American listed companies and of course adding more issues, the new non-reporting regulatory legislation deadline and scare tactics that were recently introduced to Wall Street. If these lingering Wall Street headlines didn’t exist, Luckin would continue to stumble forward until the 2020 earnings were dropped.
There do exist other upcoming JPL ordered deadlines that could be potential speed bumps along the way, if not met, but aren’t, imo, a clear and present danger to the share price.

Once earnings are released, Luckin will be compliant and continue to trade as they are today, regardless of if the August reporting deadline is met. If they are unable to meet the deadline, there could be a selloff going into the halt and price freeze put on by some brokerage houses, but again, that freeze would be lifted once they were to become compliant thru updated and current reporting. The stock doesn’t become worthless, but many investors would rather move on than hold the risk thru a trading freeze imo.

Regardless of the earnings release status, the CCP issue tho, could continue to be the anchor holding back all American listed data collecting and education based Chinese companies. Luckin is a data collection company. That earmarks them, which is again unfortunate given how far we’ve come and what is potentially right around the corner for this company. Their earnings drop would and will create huge upside potential, but again, the overhanging cloud of the CCP stronghold on these companies could stifle much of that potential and overall gain should Luckin release the much anticipated 2020 and early 2021Q’s earnings sometime in the near future. I’ll call it what it is…bad luck, not bad Luckin.