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馃槺 Market Correction & 馃檵馃徎鈥嶁檪锔廘uckin Coffee Investor Relations! 鐟炲垢鍜栧暋 $LK $LKNCY - YouTube
Channel: 馃嚚馃嚦 East West Investment Opportunities - D艑NGXii
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I'm back with a new video on
Luckin Coffee (鐟炲垢鍜栧暋 $LK $LKNCY).
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And this is due to the fact that many of
you viewers have been commenting on my
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previous video that you actually would
like to see it still covered! Well,
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as some of my Patreons sent me messages
that they want an update on Luckin
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Coffee and this update,
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it's going to be quite special because
I'm asking YOU as a viewer to help me
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with Luckin Coffee investor relations,
but more on that later. First,
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what a day yesterday, as
outlined in my last video,
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I was expecting a big, healthy,
correction of the markets.
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And this is what we got! This trading
range here of this tunnel, however,
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already more on the upside.
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So I do expect maybe this week
already some healthy pullback,
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of the markets.
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So despite all the good news around
NIO deliveries and Elon Musk,
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visiting Berlin and other
places in Germany - well,
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the stock prices of these stocks tanked,
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and as outlined in my post to my Patreons,
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I was trying something new with
this incoming correction that I was
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anticipating:
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And this time I actually went short
and try to hedge my portfolio because
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my overall view is that I'm going
to stay invested in this market.
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I think this bull market will continue,
but this correction was overdue.
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So I went short on some Apple ($APPL)
stocks because Apple was running high due
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to the stock split as well
as similar to Tesla ($TSLA),
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as well as Apple due
to this big market cap.
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It's a quite big company in the
index funds. So I thought, okay,
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if the overall market's going to crash,
that surely drags down Apple as well.
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And luckily it was quite successful.
I made 4X on my money on this hedge.
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And so I made some money
on the way downward here.
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If you have some experience
on hedging your portfolio,
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I would be interesting to know more
about this in the comments below,
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because I'm actually frankly, new to
that. Usually I don't short any stocks.
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Personally, I'm just interested in
investing long in the markets. However,
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in order to balance my portfolio
and have some risk management here,
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like for big down days like yesterday,
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I really like to make
some money on these days.
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So yesterday we finally had this
correction, the markets went down I think,
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yeah, we saw some buyers coming in.
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So actually I think hopefully
it will be bouncing from here.
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I took off my hedges. I completely
sold them already. So from here,
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I'm going long into the markets. I'm
expecting the bull run to continue.
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And of course now all the people who
went short from March and are sitting on
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cash, they are screaming about a
possible crash coming. However,
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I think it's more likely that the bull
run just continues from here and that
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this just was a healthy corrections
in the markets. This, however,
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it's only how I'm personally
treating the markets.
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So this is not investment advice,
as everything in this video,
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you need to make your own decisions
and need to come up with your own ideas
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about trading. Okay. Now
finally, back to Luckin Coffee,
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which had a decisive day on September
the second, because they had a new,
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extra ordinary shareholder meeting.
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I was writing a blog post
on Patreon about this,
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and actually lots of my viewers expressed
their interest in covering the story.
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And what I want to do with this video,
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it's not only covering what has
happened on this shareholder meeting,
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but also actually asking
you to become active!
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Because I think now it is the time
to actually confront Luckin Coffee
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with our questions as retail
investors, but more on that later,
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because to sum things up,
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what has happened so far is obviously
that there has been a fraud happening with
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Luckin Coffee. And then Luckin Coffee
got delisted, lots of investors,
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both institutional,
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as well as retail investors got hammered
by the fact that Luckin Coffee was
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delisted. And we never really
had a response by Luckin Coffee,
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but that might be due to the fact
that there has been an ongoing fight
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off who is actually running the
company and who has been actually the
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core of this fraud. So let's say I have
a quick recap where it ended last time.
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So we had a new CEO Jinyi Guo,
who is running the company,
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replacing Jenny Qian,
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as well as the ex COO Jian Liu,
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who was also fired because he was the
operating person in charge of this fraud,
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actually.
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And then this is how the board was
actually looking back then with Charles Lu
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Zhengyao, who is actually
the architect of this fraud.
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And then the other board members
some of the early investor and
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we've seen that yeah,
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there was this golden triangle
between David Hui Li, Erhai Liu
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and Lu Zhengyao who have previously
actually been involved in a other
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venture in which they also committed
fraud. And on the operational side,
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we had this operational team who was
responsible for the fraud and seemingly
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instructed by Lu Zhengyao. So this
is the fraud team at Luckin Coffee.
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And what we've seen in the past
is that all of those board and
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advisors, except for mr.
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Wai Yuen Chong have actually been
removed or have actually resigned.
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So that has been the last extroardinary
shareholder meeting in which Lu Zhengyao
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was actually calling for it and made
sure that those kinds of people were
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actually removed or
replaced including himself.
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So that was actually his plot twist and
his trick of trying to get a grasp of
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the company, because what he also
did is that he instilled Jinyi Guo,
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who has been an old friend of Lu
Zhengyao and who was the new acting CEO,
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as well as new independent
directors that got in voted by the
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committee that are basically shills or
actors on the request of Mr. Lu Zhengyao.
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That was actually his plan of
going away from this company,
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but at the same time, staying
in control of what is happening,
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even though he actually has
been removed as a person,
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and he lost lots of his shares due to
this margin call and so on. However,
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as outlined in previous videos, I was
always hoping for a management clean up,
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so a new start for Luckin Coffee.
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And I find it interesting that actually
the CFO and CIO Reinout Hendrik Schakel
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so far seems to be not
affected by the fraud.
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Of course you could allege that
here must have known of the fraud,
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but so far there are no
accusations against him.
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And it seems like he just
didn't know about it,
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but this is all speculation. I don't
know it for a fact. And in general,
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there has been no news on
what is his role in the fraud,
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but so far while he doesn't
seem to be affected.
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So what has happened in between? Well,
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we see that the new independent directors
that have been put in place by Lu
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Zhengyao have both resigned.
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So there is a cleanup
of the board happening.
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And then Luckin Coffee announced actually
that they're going to do this meeting
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the Extraordinary Shareholder Meeting
(ESM) on the 2nd of September,
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which obviously happened now. And since
then, we've seen a couple more changes!
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So, We see that the new
independent director,
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Sean Shao who has been
previously, already on the board,
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he has been the lead of the internal
investigation of Luckin Coffee.
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So he was actually pushing forward
cleaning up and investigating the company.
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And he has now been voted back
into the board as well as new
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independent directors replacing
the shills of Lu Zhengyao.
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And we also see that Jinyi Guo,
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who is still part of the
connections of Lu Zhengyao,
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he is not the managing director of
Luckkin Coffee, Beijing Ltd. Anymore.
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He still is the managing director
off the holding the Luckin Coffee
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China entities. So that is a different
entity though. However, we also see that
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Gang Wu as well as Wenbao Cao are now
also managing directors of the company!
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So in general, this looks a little bit
like a clean up is happening here, right?
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Because we see that important positions
that have connections to Lu Zhengyao
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actually being removed.
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So the last man standing
that has connections to Lu
Zhengyao actually it seems
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to be Jinyi Guo. However,
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here seems to be losing
his acting stake as a CEO
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here becoming partly replaced,
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or at least other people are also
filling the managing director
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role. And in the middle,
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we still have Mr. Reinout Hendrik
Schakel who is signing off all the SEC
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filings. However, we don't
know anything new about him,
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even though he is the CFO, he's the CIO.
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And we haven't heard
anything about him yet.
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So this is what this video is all about.
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So I still think there may be a slight
chance that Reinout Hendrik Schakel is
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actually organizing this clean up in
the background here of Luckin Coffee.
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So far, he hasn't been affected,
as I mentioned, however,
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he's also not coming out and speaking
about it possibly due to the fact that
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ther are investigations going on,
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maybe due to the fact that Lu Zhengyao
was still controls partly the board and
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that acting CEO and so on. However,
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for retail investors this long months
and weeks of silence have been actually a
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complete disaster because we are
actually, you know, in this black box,
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we don't know what's going
on to the company. We don't
have a actual financials.
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We don't have to investigation report.
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And also the SEC filings are not enough
without any public relations of Luckin
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Coffee. So I think this has to change.
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I think Luckin Coffee has finally
to come forward and to provide more
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information to investors.
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And what I actually did is I was reaching
out to the company that is actually
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running the media relations, as well as
to investor relations of Luckin Coffee.
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As you can see with all of those filings
and press releases at a bottom of each
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release, you can actually find the
investor relation and media contacts.
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And this is run by a company
called ICR inc. And yeah,
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if you go to the company website,
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you will see that day supported
a couple of US IPOs from
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Asia, including Luckin Coffee.
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And this is a company that is
running strategic communications and
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advisory. And to be honest,
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I'm totally not satisfied of how
this investor relations has been run,
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especially during the times when Luckin
Coffee was actually delisted and,
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you know, everything has been
quite chaotic to be honest.
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So reached out to them with the goal of
connecting and actually being able to
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talk to investor relations and asked them
more details on what is actually going
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on behind the scenes with Luckin Coffee.
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As I didn't get a reply to
my emails to the company,
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actually it was digging a little bit
deeper and was looking at who is actually
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running the operations here on the
China sites for Asia Pacific it's Mr.
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Lococo. And I actually tracked him
down on LinkedIn and I wrote him a
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personal message there on LinkedIn,
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and I'm not going to publish my private
conversation with him due to privacy
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issues here. However,
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what I can tell you is that he
actually denied that he is working with
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Luckin Coffee,
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which I have found to be a blatant lie
because I was seeing on his LinkedIn
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page,
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he was actually posting about an event
where he invited Mr. Reinout Schakel
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to speak to investors. So that was
clearly managed by him and his company!
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In the end this guy even blocked me on
LinkedIn when I was confronting him with
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the fact that his company is actually
signing off the Luckin Coffee investor
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relations here.
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So the work that they are doing here in
my point of view is kind of useless for
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investors like you and I,
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and this is why I think we need to
take this issue in our own hands,
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and this is what I'm going to do today!
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So instead of going through this
advisory and investor relations firm,
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I will be contacting Luckin Coffee,
and to be exact, CFO Reinout Schakel,
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directly. And I want you to be part
of that! And in order to do that.
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I prepared a little survey because.
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Want to pool us as retail investors
here and asking anonymously,
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like how many shares of Luckin
Coffee are you holding right now? So,
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so if you are going to
go and do the survey,
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you can enter the amount of shares
you're holding for instance, 10,
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and then let me know at whatever average
costs in US dollars, you're holding it.
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So say you bought them
at 30 US dollars a share,
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and maybe some of those investors are,
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they're already sold some
of the shares for instance,
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when Luckin Coffee got delisted.
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So I want to know how many shares
have you've been selling so far.
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So for instance,
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you've sold 1000 shares at
a price of 4 US dollars a
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share.
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And then I am asking you about what
would be your question to the CFO
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and CIO Rainout Schakel. For instance,
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you want to know what are the prospects of
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relisting at NASDAQ?
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So you can write anything that comes
up to your mind here and let me know.
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And if there's anything else that I
have forgotten with the survey do let me
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know here otherwise you can just
send it off and then finish the
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survey here. And I already
posted a survey with my Patreons.
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And so far we've got 10 replies.
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So a couple of people have posted like
how many shares they are owning and which
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price, and also a couple of questions
already to Mr. Reinout Schakel.
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So for instance,
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when is an expected date for disclosing
the latest results what are the plans to
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come up with a new cleaned up board of
directors and then somewhat questions
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are, when does he expect for Luckin
Coffee to get relisted on NASDAQ?
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Any timeframe for the
financial update and so on?
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So all of the questions you
have basically sent them to me,
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I will be pooling those questions
and take the most important ones,
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as well as to information about how many
shares we are actually pooling here as
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retail investors. And my idea
here is to confront Luckin Coffee,
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and Mr. Reinout Schakel
directly with this information.
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I hope he will take it seriously as I'm
sure that we can actually find quite a
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significant number of shareholders here
and also quite a substantial amount of
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shares being owned here
by retail investors.
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And then I will let you know how
it goes. Will he reply to it?
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Will he even possibly be able to
come on this channel and maybe make
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a quick Zoom video meeting and
discuss those questions openly?
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As you know, my channel
has been quite fair.
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I am not following the short seller
narrative on Luckin Coffee here.
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So there is no better way
of actually coming out and
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building up a new trusted investor
relation of Luckin Coffee with a broader
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audience, retail investors first,
maybe institutional investors second.
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I think this should be the way forward.
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And now with the changes possibly of the
board and also under operational staff
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and possibly hopefully a cleanup
here happening this should be the
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right time for Mr. Reinout Schakel
to finally informe the investors,
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because this has been silenced
for too long and I hope now we can
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actually break the silence.
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And what this means for Luckin Coffee
and possibly you as a shareholder or for
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other investors. I cannot tell you,
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you need to come up with your
own thoughts and views on that.
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What are the prospects of
this company in the long run?
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What is actually the value of Luckin
Coffee in case that they really
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clean up the management team? Is
there a possibility for a new start?
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This is all up to
speculation for now. However,
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I hope with this step of actually
reaching out to Luckin Coffee,
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to Mr. Reinout Schakel directly
to the CFO, to the CIO.
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I hope that he will reply to us and that
this could actually be one of the first
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steps into the right directions. So
let's see how it goes. And with that,
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I hope you have a good weekend and stay
tuned for more content on NIO ($NIO 钄氭潵),
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on Luckin Coffee
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on other Chinese IPOs and companies
that have a really big exposure to the
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Chinese market. So thank you guys for
watching. See you in the next one ..
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and bye!
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