LKNCY
☕ Luckin Coffee, despite past scandals, is trading at multiples comparable to Starbucks.
📈 The company is listed on the OTC market, making it inaccessible to certain funds.
🇨🇳 The focus on the Chinese consumer market is seen as a positive, reducing risk compared to companies selling to the US.
@bernardodegarcia:
“Luckin Coffee. Someone remembers Luckin Coffee, nice. Well, this was a company that defrauded, that cooked the books, and then they ended up firing the guy. And curiously, when they fired him, he raised capital elsewhere and set up another coffee brand in China. It’s a fantastic story, but look, it’s at 33, not bad. And it’s trading at multiples that are not far from Starbucks’, if I remember correctly. In fact, let’s do one thing. We’re going to put it because it’s actually trading on the OTC, which makes it unattainable for certain funds. Starbucks is more or less trading at the same multiples as Starbucks. Very interesting things are brewing in China, as you can see, especially within the Chinese consumer sector. If you don’t have exposure to, I don’t know, for example, one of the things I don’t like about Pinduoduo is Temu. The risk that Trump could mess with Temu and cap it, so to speak. I don’t know what percentage Temu represents of Pinduoduo, but for example, I would be more interested in a Luckin Coffee. I would be more interested in any Chinese brand that sells to the Chinese. I would be more interested than a Chinese brand that sells to Americans because there is more risk there.”
Viewers can see the exact part of the YouTube video where @bernardodegarcia discusses the stock here:
View the video on YouTube.
Read more articles analyzing Luckin Coffee (LKNCY) at the provided link. LKNCY stock.
