Luckin Coffee (NASDAQ: $LK) is a highly inflated coffee foam story and a complete fraud.
No wonder the giant coffee chain Starbucks could not follow the extreme expansion Luckin Coffee was pushing.
No one could.
The astronomic numbers were imaginary. (like many of the numbers out of China on almost everything – a house of cards)
IBR smelled the coffee burning and called the BS. (See our short call back in January here)
Luckin Coffee’s board has launched an internal investigation into potentially $300M fraud and suspended its now former COO, who disappeared faster than the the company’s market valuation.
Muddy Waters Research also shorted $LK.
We believe that there might be further downside to the stock – but we also know the pigs get fed and the hogs get slaughtered. Take your enormous profits, cover your position.
IBR called BS at $44,67 – today stock is at $4,62.
That is ≈ 90% return.
So cover your shorts.
Two Chinese Proverbs:
“A mouse’s vision is an inch long.”
“Cheat the earth and the earth will cheat you.”
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