Sh*t out of Luckin

[The beef 675] [I'm an image] “I heard they don’t even drink coffee in China” - Jeff Hey there carnivores, Markets bounced back Thursday on reports Saudi Arabia and Russia are making a deal. Today we’re talking about a fraud in China. And ICYMI... We’ve put together a stimulus package for readers of The Beef ONLY. All month we’ll be dropping $5 flash deals for some of our best products. You’ll have a chance to get your hands on trading products that usually cost hundreds and thousands of dollars for just FIVE BUCKS. Keep an eye out for deals coming in hot all month. Keep raging, Jeff & Jason [Image] [I'm an image] Sh*t out of Luckin It appears that the Chinese government isn’t the only one [misreporting]( data to the public these days. China-based Luckin Coffee announced an internal investigation found that the company’s COO Jian Liu fabricated $310M worth of sales beginning in Q2 of 2019, though exact details were not provided. The “Dunkin' of China” indicated that investors should not rely on financial statements for the nine months ending September 2019. Well, no sh*t. Luckin’s stock price dropped 80% on the news. That is not a typo. Muddy Waters, indeed Things had been going well for Luckin since it IPO’d last May at $17 with a market value of $531M. The [discount coffee company was exploding]( all over China (not unlike another...ahem... issue China had over the last few months) and became a legitimate threat to Starbucks, after reporting 4.5k stores as of January 2020. Heading into January of this year, Luckin’s share price was as high as $51.87. Short-seller Muddy Waters Capital received an anonymous report that fraudulent sales had been reported earlier this year. The China-focused research firm [posted the report on Twitter]( and formally accused Luckin of fraud, which the company denied. Fast forward two months, mix in a splash of cream, two sugars and a global pandemic, and it turns out the report was correct. Jian and a few of his Liu-tenants were found to be participating in acts of misconduct, including fabricating sales. Let’s just say, things must have been pretty awkward yesterday when the company announced findings. The bottom line... Muddy Waters CEO Carson Block hates to say he told you so... but he told you so. Block caught a ton of flak on Twitter for posting about his position and bringing the accounting scandal to light. While taking his victory lap, Block was sure to point out that this is a perfect example of [why the market needs short-sellers](, and the risks of listing Chinese based companies on US exchanges. [Image] The Dow Just Had Its Worst Quarter Ever. Meanwhile, Kyle Dennis Managed To Wrestle Down $477K In Trading Profits. [I'm an image]( He Didn’t Do It By Shorting Stocks... Instead, Kyle Tapped Into A Hidden Bull Market. He’s Never Made So Much Money... So Fast. And Now He Wants To Help You Unlock It Too. [Watch Now]( [I'm an image] ☑️ Oh boy… And you thought it was bad last week... The U.S. Labor Department announced on Thursday that 6.6M more Americans [filed]( for unemployment, bringing the total growth to 10M over the last two weeks. If that wasn’t bad enough, the number was more than double what the analyst expected: 3.1M. The good news? You’re not alone, no one has any f*cking clue what’s going on. On an adjusted basis, which many consider more relevant, since seasonal adjustments don’t really apply in the age of coronavirus, the number of new filings sits at 5.8M. Oh, so not THAT bad. No, that’s still pretty bad. The moving average clocked in at 2.045M, the worst since January 14th, 2017. ☑️The Good, The Bad, And the Tesla. Tesla’s off to a hot start in 2020. On Thursday, Tesla said it [delivered]( more than 88K vehicles in Q1, compared to the 79,900 that analysts expected. Tesla shares rose 17% on the news. Unfortunately, it’s still not on track to hit the 500k during 2020 that Elon Musk said it would “comfortably exceed” on an earnings call in December. In Elon’s defense, who could have expected this? ☑️ Buyout. Boeing is ready to face the facts, and is [offering]( buyout packages to its workers, so they can cut costs without playing the dreaded furlough card. The company said it expects thousands of members of its workforce to accept voluntary layoffs and retirements. It’s good to see they are putting that stimulus money to use... Boeing ALSO said further layoffs, which would be involuntary (like most of them are), and production cuts would be unavoidable in the future. Most recently Boeing put a freeze on hiring and overtime requests. To be fair, though, who would apply to work at Boeing right now? ☑️ Back to work. Jamie Dimon is [back at work](... kind of. JP Morgan’s CEO recovered from his recent heart surgery, and is working remotely for the time being. Working remote? Billionaires, they’re just like us! Dimon had emergency heart surgery on March 5th to repair an acute aortic deception. Read: yeah, just heart surgery. While Dimon was recovering, Co-presidents Daniel Pinto and Gordon Smith were at the helm, and of course, coronavirus happened and all hell broke loose. RagingBull, LLC 62 Calef Hwy. #233, Lee, NH 03861 Neither Raging Bull nor RagingBull.com, LLC (publisher of Raging Bull) is registered as an investment adviser nor a broker/dealer with either the U. S. Securities & Exchange Commission or any state securities regulatory authority. Users of this website are advised that all information presented on this website is solely for informational purposes, is not intended to be used as a personalized investment recommendation, and is not attuned to any specific portfolio or to any user's particular investment needs or objectives. 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