Jenny Qian Zhiya and Charles Zhenyoa Lu who founded luckin coffee, launched luckin coffee stock into the stock market in order to give other investors the chance to trade with the coffee company. Before we dive further into the main article on luckin coffee stocks, permit me to share with you some information about luckin coffee.
Luckin coffee was founded in October 2017, the coffee company is one of the biggest in the whole of China. A research made me to know that luckin coffee is widely accepted in China than any other brand of coffee, and Asia alone is part of the large consumers of coffee in the world.
Apart from being a coffee company, it is also a coffee house chain that controls shops, stores and kiosks that offer coffee, tea, and food. When the company was first launched in twenty seventeen, it operated with kiosks all around China towns.
Then later expanded to shops, before operating at the store level. The rate at which luckin coffee was expanding as of twenty eighteen was so suprising to me, because it not asceive they are far better than other coffee brands out there in China.
But I later discovered that, the Chinese citizens chooses to patronize luckin coffee, because It is their own brand of coffee. The coffee expanded and continued to do well in the coffee market such that it outnumbered Starbucks coffee in China by twenty nineteen.
This has made Starbucks coffee company to re-strategize their marketing plan and how they can keep dominating the market over the years. To back up what I said about China supporting their own brand of coffee, the tax placed upon foreign brands of coffee is higher than the one placed on Chinese coffee brands.
Is luckin coffee stock a good buy?
Since the launch of the luckin coffee stocks in various stock market in the world, which launched at seventeen dollars per share and raised a huge amount of money of about six hundred and forty five million dollars after fully exercising the Greenshoe option.
The luckin coffee stocks has been hot in sell on the Chinese stock exchange market, such that the more people trooping to buy the coffee company shares on a daily basis. The higher it is increasing for the benefits of the company.
These has made the luckin coffee to gain more power over their competitors like Starbucks, but all of a sudden around April twenty twenty. Luckin coffee that it had inflated it’s twenty nineteen sales revenue by up to three hundred and ten million dollars.
These incidents made the stock price of luckin coffee stocks to crash in the trade market and several executives being sacked from work. While all these incidents were happening, the coffee company decided to suspend all trading activities on the stock market.
And these has made NASDAQ to delist luckin coffee stocks from their stock market. On the second of April twenty twenty, the company made an announcement that an internal investigation discovered that it chief operating officer Mr Jian Liu has fabricated luckin coffee company twenty nineteen sales by around three hundred and ten million dollars.
These allegation of fraud towards their chief operating officer made china security regulatory commission to began investigating the company for fraud, and they have also been rumours that Mr Jian is not the only top member of the luckin coffee company involved in fraudulent activities.
so if you are an investor and you have some shares on luckin coffee stocks, I advice you put your hope on other coffee stock you have invested in. Because the luckin coffee stock has crashed statistically, therefore giving shareholders and investors no better hope of revenue by the end of the year.
Also if you have in mind to purchase luckin coffee stocks, I advise you to have a change of mind and invest your money in better coffee stocks like black rifle coffee stock. My reason for saying this is because, nobody knows when luckin coffee will be back on the stock market and that if they clear all the fraud allegations filed against them.
So many competitors in the coffee business in China are working hard to make sure they overtake luckin coffee before it recovers from all the mess.
They have been closed door meetings held by the CEOs, board of directors of the coffee company. But they has not been any conclusion on how they will resolve the issues on ground, it seems every suggestion and plans is not good enough to rescue luckin coffee. Meanwhile, they are still marketing coffee in their various shops, stores and kiosks around China.
How to sell luckin coffee stock?
The rate at which the luckin coffee stock value has crashed has made a lot of huge investors that had shares with the company to start selling out their stock.
If you have shares with the coffee company and you thinking of how to sell it out in other to earn some money into your bank account, I recommend you look for a broker who might be interested in buying it from you.
But do note that the rate at which the stock will be bought might not favor you, because the stock has no value anymore. So therefore anyone buying it has a major reason for doing so, and another method you could use to market your luckin coffee stock easily is to join a broker trading platform such as DIY investing platform.
The second method I gave is one of the best so far and really fast, But you have to put some effort to it in other to get someone who is interested.
Also when you join a broker trading platform, you will learn more on how to invest in stock market. These will help you not to repeat same mistake of investing your money in company stocks that would not last for long.
The CEO’s of luckin coffee has really fabricated the company funds, thereby making them to run at a big loss on a daily basis.