Luckin Coffee - Game Over!- Pretty sad to see investors lose money especially when a company has fabricated sales and manipulated their numbers. Unfortunately this is going to raise a number of red flags for Chinese IPOs and other listed companies. Expecting to see more issues in this space.
- Technically the price has tanked - not much to talk about here - no oversold reading is going to save this company especially if its booted off the exchange.
- Don't put money into this stock thinking its cheap - and if you have money on the table - look to get out or maybe hold. In a normal world a private equity company or takeover would happen. In this case I think the Chinese Government or 'approved' entity will support it.
- Honestly 2 big lessons here:
1 - Diversify your investments and Don't Bet Big on Any One Name!! (read Ray Dalio here)
2. Always know when to get out of a stock - have a plan and stick to it. E.g. 15% Dip get out or >200 day Moving Average.
