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Luckincoffee

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.
LEducation
by Tuhi_Capital
5
LUCKIN COFFEE ($LK): The Trend Said to Sell Way Before Delisting✨ Drop a comment asking for an update, we do NEW setups every day! ✨ Like, Comment & Follow to help the community grow 🎉🎉 --- Luckin Coffee looks like it is going to zero. Even if it does recover, US investors likely won't benefit since it is being delisted from the NASDAQ. Further, even if it wasn't being delisted, it probably would be soon given the new legislation being past which will result in stocks like this being delisted. Here is the thing though, you didn't need to know any of this to know LK was a strong sell well before the drop. Any decent trend indicator would have told you to get out of LK. Not only that, those same indicators would have had you potentially short into that big drop. Let's take a look at how one would have faired being strength and selling weakness on LK to get a sense of why it is so important to trade with the trend. Resource: thecolgatemaroonnews.com + www.foxbusiness.com --- 1. With our Fractal Trend indicator we ONLY take long setups when the trend is bullish (Aqua bar color) and ONLY take short setups when the trend is bearish (Maroon bar color). 2. Since the only options during a downtrend are to take short positions or sit in cash, we can see that traders and investors using Fractal Trend would have either been in cash or have been short for the big drop. 3. Likewise, since only long positions are allowed in an uptrend, traders and investors would have had a chance to capture a portion of the upside when Luckin did run. 4. With the last two points in mind, you can see that adding another indicator can greatly increase our ability to profit during both up and downtrends. For example on the chart, we are using S/R levels and orderblocks to find entries and exits for trades along the trend. 5. As you can see on our chart, not every pure trend based play (one opened at the color change and closed at the next) was profitable, and for sure not every more tactical trade with the S/R levels and blocks was either, but importantly the profitable plays and the money saved helped one to profit, and more importantly protect capital, far beyond what a buy and hold investor would have Long story short, LK is a great example of the power of trend trading and shows the value of buying strength and selling weakness as compared to buy and hold.
L
by AlphaBotSystem
Luckin Big Trouble - Chart Tells Us Everything We Need to Know- Currently in a trading halt. Still operating stores in China. - Chinese company which has been accused of manipulating their financial reports. - This is lesson to keep in mind - there is indeed a higher operational and fraud risk in Emerging markets which needs to be managed. This is why technical analysis is also so important. Luckin dropped out of its main trend - pitchfork and gave investors some idea to get out. It easy in hindsight to see this but that is why we strongly believe in trend and momentum analysis. - The parallel lines have identified the bottom very nicely and also set the scene for possible future price action if the trading ban is lifted.
L
by Tuhi_Capital
Lucking Coffee fraud scandal: Retail Investors rush in to buy 💩 Quoting: "The Chinese coffee chain has now suspended its chief operating officer Jian Liu and staff reporting to him. It comes after the company appointed a special committee to investigate issues in its financial statements for 2019. Luckin, which competes with Starbucks, had been one of China's few successful US stock market listings last year. The Nasdaq-listed company said its investigation had found that fabricated sales from the second quarter of last year to the fourth quarter amounted to about 2.2bn yuan ($310m; £250m). That equates to about 40% of its estimated annual sales." "On Monday, Goldman Sachs Group Inc. said a group of lenders is putting 76.3 million of Luckin’s American depositary shares up for sale, after an entity controlled by Luckin Chairman Charles Zhengyao Lu defaulted on the terms of a $518 million margin loan. Goldman is acting as a “disposal agent” for the lenders, meaning that it is helping to facilitate the sale in one or more transactions." So what happens when this happens? Retail investors step in of course ^^ LK is not available on Robintrack anymore, but here are screenshots from a few hours after the gape. Do note that trading got halted 3 days after, so the number of bagholders had time to go much much higher: static.seekingalpha.com Biggest grower on robinhood (the stock with the most recent buyers): static.seekingalpha.com CCL is carnival, they are second, AAL is american airlines, they are third, DAL is Delat Airlines, F is Ford. Great buys! Ok I am done, I going to post a new idea where I explain why IQ is eliminatory. It's not what differentiates 2 successful investors, but it's what differentiates successful and failed. Those with too low abilities don't even stand a chance. How stupid does one have to be to scoop up that cheap poop? I am now searching for investor accounts, and will screenshot some of them for posterity, because everytime they disappear. They argue and argue and talk and talk and make claims, and then disappear and history forgets. Today it's like no one was bullish on Enron, no one was euphoric, no one was convinced it would go up, no one ridiculed the bears. LOL! Here are a few quotes from various investors I am screenshoting: Press F for the experts in the media: www.fool.com Press F for CNBC: www.cnbc.com www.msn.com Here the CNBC article interview of Jim Chanos. It's from the 2 April and he just had closed his short. So 2 days (well 4) before trading got halted. www.cnbc.com And this is important to remember. You could end up with a short that you cannot close and have to pay interest forever. With CFDs it maye be different. Options could expire worthless. When companies have big reports of fraud, it is typical for trading to be halted. And something that gaps 70% down... Imagine you're up 80-90%, what's the point of holding? Better to close and perhaps re-short or wait for a pullback offered by retail investors. Just a few more of the finest quotes. My gawd this ponzi has so many bulls! A mix of baggies and other funny stocktwits: Baggies only: 1 bear had this to say: $LK when is reverse split? HAHAHAHAHAHAHA! There is just so much bagginess. Those social networks are a nest of baggies. It's like kicking in an ant's nest, hordes are coming out to defend their bag. 2 possibilities when the price moves: -> Goes up. All the baggies celebrate and say "told you so" as they breakeven or get out with micro wins. -> Goes down. Never hear from them again.
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by MrRenev
2
Luckin Coffee - Hard time finding one in ChinaBeyond Technical Analysis I am back from my 2-week trip to China, where I spent time in Beijing (China's capital), Shanghai, and a few days in Hong Kong. My experience: Its presence is non-existent. In terms of how many stores, as well as the quality (size, location, etc.) I saw over there, I found Starbucks to be the most important coffee. Another coffee shop I found to be very attractive was named Costa Coffee. I also talked with people living in the main parts there, and no one seemed to know, or care about Luckin Coffee. I would be careful with what news we hear; since before the trip I was expecting to see a Luckin Coffee store in every corner.
LShort
by dorfmanmaster
CHINA VIRUS IS FAKE NEWS! READ THIS POST & BUY THE MARKET!!!Folks, and our followers... The Chinese flue is "FAKE NEWS" only meant to cast a shadow over the BOOMING USA Economy and scare the public around the world...! The SICK Liberals and Dirty Democrats want the USA stock market and stock markets around the world to crash and the USA economy to sink! These people are SICK..!!! The real statistics you need to know about before selling into this FAKE NEWS China Flu Scam ... Each year, over 600,000 people die from the FLU... In 2018 alone, over 80,000 people died from the FLU... Did we see the market crash in 2018..? NO NO NO..!!! As of this post, there are ONLY 8 CASES of the dirty China flue in the USA...The FAKE NEWS continues their SICK agenda to try and crash the USA Economy before the 2020 election...!!! CDC Link... www.cdc.gov Public Companies are reporting ROBUST Revenues and Profits, the China Flue is a SCAM...! BUY THE DIPS BECAUSE UNTIL WE SEE THE DEATH TOLL IN THE USA COME CLOSE, OR PASS 60,000 TO 80,000 DEATHS FROM THE CHINA FLUE, IT'S FAKE NEWS!!! DO NOT LET THE FAKE NEWS SCARE YOU INTO SELLING. BUY BUY BUY
LLong
by UnknownUnicorn3159981
4
Luckin Coffee: A Promising Company Likely to See Major Upside Welcome to PrimeXBT ’s professional analysis of the stock prices of Luckin Coffee Inc. which is a chain of coffee shops. Fundamental Analysis and News: Often labeled the Starbucks (NASDAQ:) of China, Luckin Coffee (NASDAQ:) had a strong 2019 thanks to large unit expansion, huge revenue growth, and significant margin improvements. Fortunately, all of those things will continue in 2020. Luckin Coffee went from 2,000 to 4,500 coffee stores in 2019, and new management projects are set to hit 10,000 stores by 2021, so robust unit expansion will stick around in 2020. At the same time, each of those stores will experience huge comparable sales growth, backed by China's young consumers' love toward coffee consumption. Furthermore, all of this growth will come at a time when expense growth rates should lessen as the company's rate of expansion slows, so profit margins should meaningfully improve and losses should shrink. In other words, 2020 will be an extension of 2019 in terms of the company sustaining big growth. As such, bulls will remain in control, and LK stock will continue to move higher. Technical Analysis: Luckin Coffee Inc. holds buy signals from both fundamental and technical analysis. Some negative signals were issued as well, and these may have some influence on near-term development. The Relative Strength Index on the LK chart, for example, is flashing signs of bearish divergence. Its price's reached the resistance line of the ascending channel. On downwards corrections, there will be some support that’s coming from uptrend line and 23.6% Fibonacci — which is one of its major support levels. Resistance Level: $46.8 Support Levels: $44.4, 41.5, 38.5, 33.3, 28.65 Volume: 29.515M Day's Range: 41.61 — 45.73 Market Cap: 10 B As always, be careful, and don't forget about capital & risk management. Stay tuned for future technical analysis, news, updates, and more from PrimeXBT .
LLong
by PrimeXBT
7
Well It Held For Now AnywayLK In attached idea from yesterday, mentioned LK was approaching lifetime support trendline. When it hit it today I went ahead with two Sept 20th C22.5 for .15 apiece. spent a total of 30 bucks to see if LK could hold this support and bounce back to at least the bottom of ER gap. Was pretty close to letting them go when it dipped all the way to near 19.05, but glad I held on to them at least for the moment. Now trading at .23 apiece, represents just over 53% gain today. Hoping it holds now, but I have stop loss on my options at .20 now, so trying to lock in a minimum of 20% gain from these. If it breaks support and triggers option sells, I will just look to get long in stock on LK when it begins showing bottoming signs. I will absolutely not attempt to time a bounce. That's how your hands get sliced up...Happy hunting and GLTA!!
LLong
by UnknownUnicorn1314136
1
Spilling the Beans on Luckin Coffee Risk/Reward RatioLK Is currently sitting very near its lifetime uptrend support trend line, which means it's finally in range for a proper Risk/Reward Ratio for me to trade. This is my trading style, find stocks near support or resistance lines and making bets on the reversal. This method allows me to place very tight stop losses just outside of the patterns, so if it breaks outside the trend I can get out with only a minimal loss. On the other hand, if the reversal does occur, I get the entire move and don't have to be the guy chasing something down and inevitably holding everyone else's bags. So...LK entry at closing price of 19.56, with stop loss just below trend line, so 19.25. Target price for long is around the bottom of earnings gap and former support trend line area, so 22.20ish. This affords me a RRR of about 8.5:1 in favor of reward. Worst case scenario and it starts dumping below support line, I'm out with capital left over to go elsewhere and get it back. Happy hunting and GLTA!!
LLong
by UnknownUnicorn1314136