I thought Luckin Coffee’s stock has been in free fall since the corruption scandal has hit the news since last month:
Most of the companies with asian-sounding names that last a long time are usually Japanese or Korean. Toyota, Honda, Mitsubishi, Sony, LG and such. Why? Because Chinese companies tend to destroy themselves from within via corruption, like the example above. The only Chinese companies that stick around are the ones born out of corruptions: they are the extension of the CCP, and they can’t fail. They are on a mission (beside making money) on behalf of the CCP, and thus corruption charges are “written” off as “business expenses”. How do I know? Vietnam (at least in the past) operated similarly.
Below is an (not comprehensive) list of Chinese companies:
And this backs up the report that Muddy Waters Research, which came out with a short report on Luckin Coffee, they came out in late-January and said, we’ve got some information sent to us, we don’t know who it’s from, but it appears to be credible, and if this information is correct then Luckin Coffee is inflating by 70%, 80% the amount of sales that they’re doing. And now Luckin has come out and basically said, yeah, turns out the Chief Operating Officer was doing it.
February when Luckin responded to that report, they came out and said, it’s a short-seller, it’s someone who’s completely making it up, they were really vehement in their denial. And what they probably should have said is, “We believe this isn’t true, we are doing an investigation.” Obviously, their share would’ve fallen, but it would have been a better handling of this. And ideally, they would have found nothing is wrong and then they could report that and the share would go back up. But if you own shares in Luckin, one of the things I suggest you do – and this is not a Motley Fool recommendation, people who own the stock, if it’s recommended by us, they will be getting email from the various services – but you need to wait until the whole picture comes out, because if you believed in the fundamentals of this company and what you’re finding out is they’re farther down the road than you originally thought they were, you might still see a path for them to get there. I’m not saying that’s the answer, I’m saying, right now this is the company saying, this is what we think the issue is. They’ve appointed a special committee to look into it, they’re using independent auditors to go back and check this out.
And this could be worse, it could be better, it could just show that there’s more work to do here. And this was always a long-term stock. This right now is a company selling $20 bills for $19 – I’ve used that analogy a lot – to build market share, to build volume, they’re giving away coffee to compete with Starbucks . That was always going to be a difficult play, so wait until you have all the info, especially, when you’ve already lost so much of your value.
Just about every Chinese owned entity in the US is actually owned by the CCP either outright or as a majority, all of them as well as many of their smaller businesses and places in academia are at least to some degree part of the Chinese spy network, both military/intel and industrial espionage.
They own so many of our politicians outright as well as have so much influence if not outright control of our major media and social networking platforms nobody really knows just how deep it goes.
I have hoped since January when the collusion and corruption between the Chinese CDC and WHO furthering the cover up of the virus we’d see a national awakening to just how China truly is an adversary in every sense but it seems they have so much control it’s basically been buried by everyone but Fox and Some of the alternative upstart news sources.
I dont mean to talk about the union mobs as of now. Im talking about the unions that tend to form when the workers there suddenly get “distraught” by their “working conditions” as election cycles come around and politicians wave the carrots with a carving of “increased minimum wage” in front of them.
Detroit is a prime example.
And also, an obligatory reminder that Dianne Feinstein employing a Chinese spy is a nothing-burger, but Trump tweeting memes is RUSSYAN COLLUSION
While the city population has shrunk (from a peak population of 1.8 million in 1950 to 714,000 in the last census)
The days of the good Union workers are well over… no one really wants to work in Detroit. Or surrounding areas. The Automobile industry is “struggling”. Barely even making the mark.
Not really, most of the manufaccturing jobs in the US are now in states that don’t have union protections and barring a clean sweep by dem’s of both houses, the WH and a huge majority of state gov’ts all in the same cycle they just won’t be making a comeback.
The states have figured out that private sector unions are nothing but job and revenue killers. Even the dem’s that pay them lip service and scratch their backs where possible know it and won’t do anything serious about changing the Status Quo.
Lets hope that you’re right. Most companies arent like Tesla, where they somehow acquire special status and subsidy for being considered a “green” manufacturing automaker, but even that has run its course with the recent spats.
At one time electronics were made in Japan. When costs rose the manufacturing was transferred to China. China provides most electronics for the US including 30% of electronics for the USAF.
Maybe in say five years after we begin a “Bring it all Back” campaign.
Until we do so in earnest even if they tried to do so willingly the end result would be bare shelves since most of the retail goods sold in the US are made in China and there are few if any available alternatives from other nations much less from the US.
Yeah, this is not going to happen over night, however a lot can be done in a short period of time that will help mitigate the pain to manageable levels, such as looking at other countries like India, Mexico and other South American countries.
What we need is a national push for my “Compaq of The Americas”.
That would give us the economic might to literally control the world for the next thousand years.
It would also eliminate virtually every serious problem we have from illegal immigration to stagnant wages, to the whole of the “China Problem”, hell, even the drug war.
NAFTA had one thing right, the solution to most of our problems would be to improve the economies of our neighbors.
The problem is that it ended up being essentially a one way suicide pack that sought to benefit Mexico at our and Canada’s expense ignoring the rest of the Hemisphere.
Russia and China would lose all influence and the ability to destabilize central and S. America under such an agreement completely as well.
Wasn’t it “The Monroe” doctrine that basically said to the world, “Stay the Hell out of Our Hemisphere and we’ll stay out of yours”?
