Here’s a Power Buy dominating in China for investors

Article Excerpt

Subscriber update on April 3, 2020 We now see Luckin Coffee as a sell. The stock has dropped sharply on news that the company’s board of directors is investigating reports that senior executives and employees engaged in financial misconduct. Luckin is looking into allegations that chief operating officer Jian Liu and other employees reporting faked sales transactions amounting to $310 million. The company’s long-term business model appears intact, and while the allegations are serious, the huge drop may more reflect today’s extremely volatile markets rather than the impact of the potential misconduct. Still, the investigation could hold back the shares for investors for some time. $$$$$$$$$$$$$ In just two and a half years since its launch, Luckin Coffee has now passed Starbucks as the biggest coffee chain in China. And unlike Starbucks, many of its outlets are cashless and focused on pick-up as well as delivery. That has been a big plus during the COVID-19 outbreak. In May 2019, Luckin sold shares of its stock to…

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