Believe It or Not, I'm Starting to Warm Up to Luckin Coffee
Some may have forgotten all about Luckin Coffee (OTC: LKNC.Y), and that's understandable. The once high-flying Chinese coffee retailer caught the imagination of growth investors in 2019, before prior management was caught fabricating hundreds of millions of dollars in sales in March of 2020.
After the subsequent stock crash and fallout, former management was ousted, but prior chairman and large shareholder Charles Lu both escaped scrutiny and retained some influence over the company -- influence that unfortunately continues to this day. Moreover, Luckin's stock fell recently after it filed a petition for recognition under Chapter 15 bankruptcy.
However, there may be some confusion as to the bankruptcy filing, which is different from Chapter 11 liquidation. Furthermore, Luckin just completed an investigation that could further distance the company from prior management, which is apparently trying to sabotage its new CEO. With a lower share price, is it time to buy?
Source Fool.com
