Will Luckin Coffee Recover? | Lucky Lee Bear or Bull? | LKNCY Fined by China

published on August 2, 2020

Good morning good morning guys welcome back to millions my nephew all right so in this video i really want to just cut right to the point get right to it looking coffee we're going to talk about everything that i know about it up until

Right now um because things are getting ready to start sp uh you know speeding up and there's gonna be a lot of things going on and i know you guys are wondering what's gonna happen next

So we're gonna i gotta this is gonna be a very informative video got a lot of stuff in here to cover i'm gonna talk about the the situation with the stock right now what china's gonna do about the situation

Um also where the price is um sentiment the narrative how it's changing and also some beers i'm gonna show some beers point of view and things like that so we

Can go ahead and you know make sure everybody is covered in this video make sure all opinions will be shown now you know i'm not a financial advisor i just wanted to put together a little bit of research

And some information so you guys can make sound decisions going forward all right i don't want you guys to miss out on a great opportunity and also i don't want you guys to think

You have found an opportunity and it turns out to be the worst trade of your life so that's what this video is if you like all that if you you know would appreciate that i would love it if

You would just hit that like button so this video could spread out help me with the youtube algorithm all right guys and make sure you subscribe to the channel and uh let's get started alright so

Looking looking coffee so far um today the beijing watchdogs are now going to start punishing looking coffee and they say the related firms after confirming the 300 million dollar

Accounting fraud so uh that's basically what's going on is that china is pissed at looking for making them look bad as far as getting that money from us stocks

Uh other companies that want to go public such as alibaba and other different ones that they have new ipos are starting to be scrutinized extra because of what luck and did and so

Says right here the ministry of finance says it will take punitive action against looking after its investigation confirmed the coffee chains accounting firm fraud announcement from two regulators

Places that be lingered beleaguered coffee chain in the spotlight again after scandal led to his delisting from nasdaq so lucky has been delisted from nasdaq

And that's because um obviously the fraud that they did and nasdaq got these really strict rules so if you can't abide by those rules you're going to get de-listed and they didn't ever put out

An earnings report anything so they went to otc now you can trade looking on otc i made a video about how and where you can go buy into stocks if you want to buy them but you can only buy them a certain brokers

And i'll leave a link to the description for that video so it says right here the state administration for market regulation on friday said that it's taking steps to punish looking

And related third-party companies for their misconduct stressing the need to defend fair competition and market order and protect consumers they also confirmed looking

Inappropriate competition behavior noting that the company fabricated sales figures and then uh promoted fake numbers so they want to you know regulate and show that china is actually regulating so

That the scc doesn't have to look like they're the only ones trying because it it it kills the investor confidence as far as chinese companies says lucky stock has lost about 90 percent

Um and you know or 11 billion in the market value since the scandal broke out all right so they're restructuring the company right now says right here the company's undergoing a corporate restructuring overseen by alvarez and

Marshall which will act as light touch joint provisionary or provisional liquidators under the cayman islands court order it is also negotiating with creditors to

Salvage this business so that right there the company is restructuring so we can try to pay back these debts all right so now there's some positive news

Is looking stock finally a buy this article came out today and we're going to go straight to it looking was a cheat of course but to be fair united states has had plenty of

Homegrown companies lie still and worse so what he's trying to say is that a lot of a lot of companies have also been in the hot water for the same particular reason and still ones that we still

Invest in to this day valiant pharmaceutical is one of the memorable us based high flyers which imploded for similar improper and prop and priorities enron was also a high

Profile mess and then he says uh boeing and pg or pge pg and e for recent transgressions you know boeing's planes falling out of the sky stuff like that so

These companies all have problems and looking isn't something special it's just another company that made a mistake so we shouldn't hang it over like hang the company for one thing that it does

Wrong when american companies does it all the time looking used to be the property of growth investors and now shares are in the hands of those who see a potential turnaround

Value play or an alternative um you know some people think that it's going to go bankrupt so you have shorts that are trying to bet against it they they want to write it all the way down

And then you have the bulls who look at the big you know the charts and they see this this big climb here now this this writer he's talking about an investor place he even mentions other

Articles written by his colleagues working at the same firm and he's basically saying that these guys have written bad things about the company

And he's he's basically saying that um even says it right here by roughly a dozen of my colleagues at investor place over the last couple weeks is evident that they are extremely at hard at work trying to create you know that narrative

That the company is gonna fail but he says right here i'm technically inclined to see a low forming the bullish observation is supported by bearish sentiment that would be

Hard-pressed to get much worse so that means that you know everything's already priced in guys as far as all the bad news and everything else it's not too much further down that the company can go um

It says on the price chart conditions are improving after jumping 130 percent in less than two weeks to confirm a small double bottom looking has constructively pulled back and a bullish looking consolidation that's finding

Support at the 62 retracement level of a very volatile trading month for shares given the combined indications looking looks great as a contrarian play now you know this channel millions by

Nephew was all about contrarian trades that's mostly what i look for that's what i search for this is starting to look like it's size enough to become a contrarian play i look for stocks that are

Gonna do two three hundred four five hundred a thousand percent returns and in order for those type of returns to exist it has to be a contrarian play if everybody knew that the stock was going to do well

It wouldn't be a contrarian play it would just be buying amazon okay and there's not much to make there because it's already doing well but for a company that's like a

Situation like this where you see the chart looking like that this is where it's a contrarian play everyone thinks it's going to go bankrupt now if you're a bear and you're short

You have a lot of reason to think that this isn't going to work out and they have trust issues you know so a lot of the reason why people might be thinking that it's not gonna work out is because

It's it's already went down so far but i ask you bears how much further can it go down how much more money can you even make you know if it drops so it says with

Luck and shares now trading in the two dollars and fifty five percent uh cent range is this a historic buying opportunity ultimately this will come down to whether you think

China has an appetite for takeout coffee and whether the black uh mark against luck and coffee result and consumers avoiding the brand for competition like starbucks and later in this video we're gonna show

Um i don't know if he's a bear or what but he has a whole channel on youtube this guy goes around and goes inside of looking stores and i'm not really sure if he's fabricating the situation by only going

In at certain times he's trying to paint pictures i don't know if he's a bear i don't know if he's a bull i don't know you gotta let you guys decide that's so it says right here

And this guy even goes to say the same thing um about how several investor place contributors offer contrasting takes on whether looking coffee is an investment material at this point

Says john josh notes that young emerging chinese consumers have been embracing coffee culture and luck in his position to take full advantage of this trend however he

Ultimately recommends avoiding it all right point out the inability to trust the numbers released by luck and coffee well we eventually got rid of the board and we got rid of lou

So now we're getting third parties to come and audit and they're taking their sweet time which is kind of why the stock is dropping is because they haven't been putting out much news

But at the same time um they're probably been doing a very thorough audit of the numbers and making sure that when they come out no one will be able to uh reproduce um anymore you know going

Forward from here you have to be a hundred percent um accurate and precise with your numbers because they're going to scrutinize the numbers going forward guys so you got to believe

That if the company didn't give a f they would not spend so much time they just drop some more numbers and try to get the stock to pump again they'd use the momentum they'd say a whole bunch of crap instead

They're waiting they're waiting they're waiting and they're allowing um all these things to happen china is gonna find them and i'm gonna talk about that in a second but basically a lot of stuff is going on

And these guys are just trying to take their time says luke lango thinks that the combination of debt and new equity will give looking the cash needed to survive the current crisis

And continue expansion if things go right looking coffee could fulfill this initial billing to become the starbucks of china by 2030 and that would mean huge upside for investors huge upside all right guys so i'm going

To go over to this uh next piece of news all right so i just did a little search on google i just wanted to see what the fines were i hadn't seen exactly what number they were

I don't have a subscription in bloomberg so i couldn't i don't know if there's like if you guys know exactly if anybody has the the numbers from bloomberg here drop them in the comments below if you know exactly how much the fines are

Please let that you know drop that in the comments below if you have any other information i'll put that in in the comments below so it says right here chinese regulators uh will impose penalties on luck and

Coffee after an official investigation and into the accounting practices found evidence of data fudging we spoke about that a few minutes ago um basically i just don't know how much

Uh the fines will be so china does issue fines so they're gonna pay some fines it gets back spanked on a hand and then they're gonna keep moving all right guys alright so and uh this one i don't know i saw this

One this must be a top search will look and coffee recover uh bearing any future internal exposure or chaos looking coffee could recover lost ground here granted it will take some time for full recovery

But it appears most of the most of the chaos is priced in that was back in june 22nd this is july nothing's happened since then except some positive news but we haven't gotten any positive news we just been waiting

All right so now we're going to talk about the technicals uh i'm going to look at the chart and see where oh it's going up right now so right now the price is kind of trying to recover itself

I don't know why we don't really know exactly what's going on we just know that it's starting to uh go back up a little bit and we're gonna check out the charts so

You can see in the last month we climbed up here this would have been a good time to sell uh it would be a good time to say here would have been a great time to sell back here

This is a great time to sell and so anybody who's doing uh back and forth thing kind of like kodak would be making a fortune and that's kind of what i did i sold um back up here i sold and i bought back

Down here and here we are all right i bought up here and i bought a p up no i bought down here i bought at 136 and i bought a 220 now my robinhood account i got in at 136

Or 139 one of those numbers and my charles schwab i had to transfer money over to charles schwab it took a couple it took like a day for me to send like 8 000 over to charles schwab

So once i did then i was able to buy by then it was already up because look it was down here and by the time i could buy it it was at 220 or something like that

So i bought another uh you know 3 000 shares at that time and i would love to buy more but you know i just you know my business is slow i can't buy as much as i want but

You guys that are richer than me enjoy this is going to be a good one it shot up here it would have been a good time to sail because i made a hundred percent i could have sold here and then uh brought it back down here

And bought it back down here would have been great um but i was not sure why i was even going up in the first place there was no news and i was afraid to sell at the time um

So i you know next time going forward i know that if i make 100 on the trade i'm going to cover my profits or i'm at least going to do a trailing stop it's just a mistake just to trade us you

Know listening i'm always going to do a trailing stop after 100 or 50 or any type of percent of high range and then as you can see it just continued to go down from there and that would have

Been great because i could have doubled my amount which uh you know a double i would have doubled 6 000 that was worth and then i could have bought back down here

And now i'd be on my way to you know having twelve thousand dollars worth of shares instead of anyway that's just you know lesson learned all right now we look like we're making uh

This was a nice little dip today and then we shot back up here and then back down here so some some kind of price action is happening guys and you can see the taper off the sell-off the

Descending triangle pattern um but i don't have a way to draw it but don't worry cause someone else drew it and i don't know we're gonna have to break out either up to the upside or the

Downside so let's look at some charts here this guy is definitely thinking uh he's he's long and he's looking at the resistances the resistances so he's looking at these

Gaps they got to get field all right so we're looking at 680 i would love to to get up to that price and then the 25 gap so this would be a nice short squeeze back

Up here i don't know we need some good news for that to happen i'll zoom in a little bit i'll see can we zoom in gonna have to work with that we got to work with what we got here

Um so yeah 25 right here and these are our resistance lines i guess we need to get back there somebody else drew this chart on me and we also have here it shows where we are now we need to get

Back to the 276 line he's saying we need to break this 276 line but it looks like we're starting to work our way back up we can get back to that point this is where he thinks it's headed next

And that would be nice to see some action in that direction this is a descending triangle pattern thinks that we're gonna go uh here and bounce around in this range until we break out

Um i think we're gonna break upward we could always break downward the bears think that we're gonna break downward and probably break upward it just depends if we start making higher highs then that'll be great

Um so you know we just gotta hang in there if you guys are long-term you're probably looking at it the way i'm looking at it then you're seeing it in this light and i'm saying to myself no we got to get back up here at some

Point and when this gap gets filled just imagine how much money having you know five ten thousand shares at this price would do to your your bottom line i mean you know we're

All looking to make money obviously if it goes down to a dollar you're gonna lose half your money and that's gonna suck but i'm looking at the you know the long-term view i'm looking

At the long-term view of the company and i can you know in my opinion they have enough money to survive they have more money in cash than the market cap and they also have more stores than the

Market cap is accounting for and we're still waiting on earnings so until we see earnings we still don't know anything we're just kind of guessing around the dark but um oh that's why he said he was just

Bored he said he stopped the 258 i don't know why on earth if you would set your stop to 258 cent i i mean well he he moved his stop up to 258 i don't know why you're even

Trading with stops stops are just gonna stop you out they're gonna did this they have a stop army they're gonna get you out so if you're using stops on this trade you're just gonna get your money took

I don't feel like losing money having to keep buying back in and out because i'm using i'm not using any stops it feels like to me that all the damage has already been done and i'm not going to like

Waste any more time he said i had bought 5 000 shares before it got delisted now trades as hey competition for starbucks in china so this guy is saying that he bought 5 000 shares

And see what his comments say uh they're saying it goes level today with the slide progression oh that was a while back uh these guys are just talking can this

Get relisted uh i don't know this could uh trade on the otc so one of the things guys if you were you know if you expecting it to get relisted this is an old chart

If they're expecting it and these are all old charge actually if you're expecting it to get relisted they need to do proper earnings and they need to do auto audits and it was kind of smart on their part to wait until

They got fined first get the fines and everything out the way because once they get fined and everything like that then they should drop the earnings i would wait for the fines to come in so all that could be

Priced in how done would it be to put out the earnings we start our momentum rise our rally and then they start dropping fines and all kinds of more bad news so i think they're trying to do is let

All the bad news happen first and then start the good news so we can get good momentum these guys are very smart don't think they're dumb all right so now last but not least we're gonna talk about mr lucky lee

Alright luckily he's got a channel i don't know what you guys think about this please let me know in the comments if you think this guy is bull or he's a bear he could be against the company i don't know

He's got a lot of videos he went on the tour i guess going from store to store the store and he's trying to either show that the stores are busy or not busy and um there's a lot of arguing going on

In his comment sections people don't really see what he's doing or if he's helping or if he's hurting and it kind of looks like he's trying to hurt i don't know maybe he's just trying to

Do it all in good faith i really have no idea uh he's also doing it for nioh that's another one of stocks i cover here you know we guys are we're just trying to make money and i don't know if this

Guy is just trying to show us what's really going on there and he's just trying to play neutral but uh a lot of guys on the board where i'm at they see him as a bear

And putting out bad information and making it look bad i don't know if it just looks bad on its own or if it's just because he's only there's really no way to tell if he goes into the shop and he chooses

The times to go into the shop um to film and he picks times that are not busy he could persuade people to believe that the store is not busy now if he sits there for 24 hours

And shows you know and then it depends because you guys know what i'm talking about when you go into a restaurant there's certain days in certain areas that it's gonna be busy

It just depends uh like if you're in a tech if you're in a tech center then like even like let's just take starbucks for instance in the tech center starbucks slaps

No matter what but if you go to a different area where there's no a whole bunch of people doing tech and they're not like working at office desks and there's just a starbucks sitting out there hanging out there and it's like at

A bad location then it's not going to be appear to be busy so what he tried to do is he tried to go from different looking locations and he's trying to do different locations as he tours

Tours china and the provinces but the reality is that we still can't use this data fully accurately because we don't know if he chose which days he chose to go and if these days that he chose to go

Are busy every company has busy days and slow days and every location will have different busy days and slow days so i don't know how this can happen he did say that he found uh stores that

Are closing and that's okay because obviously looking with closed stores that aren't performing if they need to to open up stores that would perform in better areas that's kind of what they were doing all along

So go check this guy's channel out if you want information i don't know if it's good or bad uh seems bad to me to a certain extent i'm just saying like i can't really tell

What he's doing i really don't know but you know i'm not here to like bash anybody's channel or anything like that i just don't know what he's doing i can't tell if he's a bull let's see what it says it about

He doesn't have any type of information this could actually be one of the bears just trying to put out info but i don't know he puts out i haven't been making a lot of videos and you guys know that but

My video views 30 days subscribers he doesn't really get a lot of subscribers at all that's kind of crazy he doesn't get any subscribers so nobody really subscribes to his

Channel at all i don't know why that is um i don't know what that's about so as soon as i start making videos i get subscribers and he's putting out videos

Much more than i am so he's putting out infinite videos he's putting out 45 of them in the last 30 days i only put out 11 videos and yeah so i don't know to tell you guys it's hard to tell you know so

Anyway hope you like this video smash that like button hit that subscribe button talk to you guys later peace

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