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....841124551_origin.png
Biggest grower on robinhood (the stock with the most recent buyers):
static.seekingalpha....426307409_origin.png
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/investi...ontinued-growth.aspx
Press F for CNBC:
www.cnbc.com/2020/01...tarbucks-trader.html
www.msn.com/en-us/ne...rin-group/vp-BBWK3Re
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/2020/04...plunge-thursday.html
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.