Why Investors Should Just Give Up On Luckin Coffee

From: investorplace.com

When accusations against Luckin Coffee’s (NASDAQ:LK) accounting of false sales proved true, investors rightfully headed for the exits. LK stock fell from the mid-$20s and settled at $2.16.

The miniature rallies will not likely have enough momentum to offset investors who bought shares in the $30s and $40s. Still, the company will find a way to stay listed.

The Nasdaq said that it will de-list Luckin Coffee from its exchange when its former chief executive officer, Jenny Qian, and its former chief operating officer, fabricated ~$310 million worth of sales. It may also have inflated costs.

Keeping its Nasdaq listing seems unlikely with too many unreliable revenue totals and cost figures. This did not stop its shares from bottoming in the $1.40 range last week and topping $2.74 on May 27.

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