Luckin Coffee Fraud Explained! What ACTUALLY Happened!

Рет қаралды 41,251

4 жыл бұрын

Luckin Coffee is an example of quick-to-IPO companies that don’t have all of its processes ready. In this video we discuss the founding by Jenny Qian and the deep involvement in the business by the board chairman Lu Zhengyao.
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Пікірлер: 113

@theartofbiz Жыл бұрын

As crazy as it is, Luckin has not only survived the scandal, but actually made a miracle comeback, posting full year profits for 2022. I made a video explaining their turnaround by breaking down its business strategy and comparing it with Starbucks China, could be interesting for you.

@melvinch Ай бұрын

With CCPee at its back, any scandal can be unscandalized. 😆

@insmart_ua 4 жыл бұрын

Man, great channel, cool and useful up-to-date videos and explanations! This deserves much more views. Subscribed. Keep up the good work, bro.

@TheFinancialController 4 жыл бұрын

Much appreciated Josh!!

@ruthlessluder 4 жыл бұрын

Love your whiteboard approach. Much better than a slideshow.

@TheFinancialController 4 жыл бұрын

Thanks ruthless! I am curious to know why you liked the whiteboard style. It would be good know that so I can apply this to my online courses too.

@herbertkwong1728 3 жыл бұрын

McDonald's make money from rent money and franchise fees. Starbucks is like a bank making gift cards like printing their own currency. The big mistake lukin made was actually selling coffee.

@TheFinancialController 3 жыл бұрын

Interesting opinion :)

@bunnyman6321 Жыл бұрын

Tell more

@wendyshoowaiching4161 10 ай бұрын

It's still selling coffee business. If you don't sell, who will buy if you have nothing. China is a huge market. Western Competitors will as usual magnify a small start up problem. In reality Chinese population like coffee. And the company will succeed better and faster than Starbucks because they provide the brand, affordable cheaper drink, lower labour cost : lower operating cost, 50% IPO lower price than Starbucks

@TheIcelandicInvestor 3 жыл бұрын

Really well explained, thanks for a great video!

@TheFinancialController 3 жыл бұрын

Awesome glad it was clear

@Cloudnerd Жыл бұрын

Hi Bill, great coverage of this video! Will you do any update anytime on it? Thanks :)

@flickafy 2 жыл бұрын

Hi Bill, thanks for your excellent videos. I know you have a focus on the US, but as you've touched on Wirecard and UK/EU VAT in the past, I wonder if you might ever cover the Patisserie Valerie scandal in the UK? Thanks!

@TheFinancialController 2 жыл бұрын

I will check it out

@rizwanmajeed9473 3 жыл бұрын

Love this series. Do lehman brother, freddie mac and AIG pleaseeeeeee

@TheFinancialController 3 жыл бұрын

Will do thanks

@hoochiscrazy444 4 жыл бұрын

Could you also do a video about the Wirecard scandal ? I've heard people compare it to Enron but I still don't fully understand the scandal

@TheFinancialController 4 жыл бұрын

Hey hoochiscrazy there is actually a conflict of interest that prevents me from discussing wirecard, but I have other exciting content planned :)

@hoochiscrazy444 4 жыл бұрын

@@TheFinancialController oh ok then, thanks for the reply I really enjoy your videos keep it up

@khethamntombela6686 3 жыл бұрын

Thoughtful analysis, I like.

@TheFinancialController 3 жыл бұрын

Thanks khetha

@raccoon874 8 ай бұрын

*Interestingly, as of November 2023 Luckin trades as a pink sheet with its price nearly 66% the 2020 peak equivalent.*

@evadesc 3 жыл бұрын

Great channel. What is the quickest way to decipher if a company is legitimate or not (i.e. whether or not it can turn into another Luckin Coffee)? Do you have an in depth analysis of Nio? What are your thought on Nio, Baba, and other companies listed on US markets?

@TheFinancialController 3 жыл бұрын

Will do a video on Nio soon. With EVs, I like the best in class, aka Tesla

@evadesc 3 жыл бұрын

@@TheFinancialController Tesla is a solid mid, long term hold for sure. As a day, swing trader I trade any stock instrument with very high liquidity. However, I'm also looking to expand the long term portfolio and wondering if there's a quick way to assess a company's viability instead of having to fill out a drawn out DCF spreadsheet. Is there any method or service that quickly can tell me what the reasonable intrinsic value of a company is and whether they are honestly reporting or not? Should I just avoid anyone audited by Ernst and Young, for example? What are some quick red flag indicators for a company that's safe to invest in and what might not be.

@TheFinancialController 3 жыл бұрын

These are all good questions. I will try to address them in future vids

@evadesc 3 жыл бұрын

@@TheFinancialController much appreciated. your channel and your background at PWC as a controller give you an edge over many channels. Glad to have found it by random chance.

@chirayugarg7207 4 жыл бұрын

I watched corporate accounting frauds of ur channel. My question is that how can the shareholders identify frauds?? Coz we cannot trust auditors

@TheFinancialController 4 жыл бұрын

Great question! The old trusted way is to monitor cash. If revenue is trending higher so should cash flow.

@chirayugarg7207 4 жыл бұрын

But how can I monitor cash??

@TheFinancialController 4 жыл бұрын

Compare cash growth on balance sheet to revenue growth on income statement. I can explain this further in a future video :)

@ptbot3294 3 жыл бұрын

I used to work in fraud, granted nothing of this scale. But fraud is generally concealed. You really have no chance of detecting fraud without knowhow and access to private information.

@teemo1385 3 жыл бұрын

Any chinese companies (communist country) can be fraud as the leaders of the countries themselves are frauds....I've always thought that's a given simple fact???

@rinata36 3 жыл бұрын

Interesting stuff!

@TheFinancialController 3 жыл бұрын

Thanks for watching!

@4b11t9 4 жыл бұрын

Can you do one on GSX?

@TheFinancialController 4 жыл бұрын

I will look into them. There have been a lot of buzz around them!!

@malamofficial7558 9 ай бұрын

Thank you ❤❤❤

@kiklocus4660 4 жыл бұрын

Nice art work of its symbol

@TheFinancialController 4 жыл бұрын

Thanks. Only took 9-10 attempts:)

@MrCheesenaan 3 жыл бұрын

4,900 locations in just 2 years !

@tariqz1593 2 жыл бұрын

Its China most populated country on earth.

@otherwisemaladroit 2 жыл бұрын

Luckin Coffee just applied for a trademark in the Philippines.

@dilibau 4 жыл бұрын

This channel will explode soon...

@TheFinancialController 4 жыл бұрын

cool guys don't look back at explosions :)

@HafeezBlackLeg 3 жыл бұрын

now they are Luckout Coffee or lockout coffee

@arnevisser5400 4 жыл бұрын

Great video, seems like a risky but worthy investment to me.

@TheFinancialController 4 жыл бұрын

Yeah it might be, price seems low enough! Thanks for watching :)

@andrewwilkinson553 4 жыл бұрын

But what was the actual fraud?

@TheFinancialController 4 жыл бұрын

Hey Andrew, the details were not released by the time this was shot. I will be doing a follow up video with that soon.

@andrewwilkinson553 4 жыл бұрын

@@TheFinancialController Ah ok thanks.

@dannyhernandez455 4 жыл бұрын

At these prices is this stock a buy?

@TheFinancialController 4 жыл бұрын

I would not buy it personally. Too much of a mess. There are other opportunities far better ;)

@kadiru.4419 4 жыл бұрын

i hold 70 shares the best that could haopen is a relisting but first of all they need to save their shops from going bankrupt!

@bunnyman6321 Жыл бұрын

@@TheFinancialController What's the other opportunities that's better?

@bunnyman6321 Жыл бұрын

@@kadiru.4419 How you making out now?

@kadiru.4419 Жыл бұрын

@@bunnyman6321 to be honest i was scared and sold quick for a little profit and invested all of it into gazprom but you know what happened. politicis slapped my face and stocks to zero.

@Speaking_head Жыл бұрын

Every year there are a bunch of companies fall into a fraud by the same reason as lucking coffee etc

@vincentrosas6791 Жыл бұрын

ZTO did the same thing today… that’s why I’m here lol

@lemuelrhodes7295 3 жыл бұрын

thanks，useful for my homework

@lemuelrhodes7295 3 жыл бұрын

Ah, my nationality has been exposed by my comma

@TheFinancialController 3 жыл бұрын

Haha thanks. How did the comma expose your nationality?

@lemuelrhodes7295 3 жыл бұрын

,this is English comma and ，this is Chinese

@jacobrommel 3 жыл бұрын

Anyone here when its making a comeback

@TheFinancialController 3 жыл бұрын

It has been climbing as of late. Fingers crossed 🤞 for them

@thepilgrim1581 3 жыл бұрын

And they ran away with millions and millions of dollars........

@goemon9378 3 жыл бұрын

5:28 for a moment i thought the real life her popped her head up lol

@TheFinancialController 3 жыл бұрын

Thanks for noticing my amazing graphics skills :)

@tariqz1593 3 жыл бұрын

$14.95 now

@TheFinancialController 3 жыл бұрын

That’s great

@kilmoturtles1 3 жыл бұрын

$6.90 now

@tariqz1593 3 жыл бұрын

@@kilmoturtles1 hunting apportunity I loaded yesterday.

@kilmoturtles1 3 жыл бұрын

@@tariqz1593 oh, I bought. I don't care that they claimed bankruptcy in the US; it was a strategic move. I like the company and its vision. If I lose a couple thousand, oh well. This is a risk, but one with high upside, and they already have their foot in the door

@tariqz1593 2 жыл бұрын

@@kilmoturtles1 $15-13