A Cup of Luckin Keeps Starfucks away...
- Thread starter AhMeng
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GIC-backed Luckin Coffee burns investors in 39% plunge from high after IPO
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[NEW YORK] Luckin Coffee's initial public offering (IPO) was met with great fanfare -- and then it wasn't.
Shares of Xiamen, China-based Luckin Coffee - which is backed by investors including Singapore's sovereign wealth fund GIC, US money manager BlackRock, and China International Capital - soared as much as 53 per cent to US$25.96 on May 17, their first day of trading in the US.
Since then, the stock has plunged 39 per cent from that peak, even with a rally in the final half hour of trading Thursday that gave Luckin a 7.1 per cent gain for the day.
Investors have questioned the company's sacrifice of profits in favor of a cash-burn strategy at the same time as the rocky China-US trade relationship weighs on global markets.
The Chinese startup is seeking to overtake Starbucks, opening more stores in two years than the industry giant has in 20 years.
Luckin's 7.1 per cent decline from its offering price of US$17 per share - to US$15.79 as of Thursday's close - isn't as bad as the performance from ride-hailing company Lyft, which is down 20 per cent from its offering price of US$72 in late March.
But it's a frustration for market watchers such as Hedgeye Risk Management analyst Howard Penney, who last week projected 50 per cent upside for the stock.
BLOOMBERG
Listen to this article
[NEW YORK] Luckin Coffee's initial public offering (IPO) was met with great fanfare -- and then it wasn't.
Shares of Xiamen, China-based Luckin Coffee - which is backed by investors including Singapore's sovereign wealth fund GIC, US money manager BlackRock, and China International Capital - soared as much as 53 per cent to US$25.96 on May 17, their first day of trading in the US.
Since then, the stock has plunged 39 per cent from that peak, even with a rally in the final half hour of trading Thursday that gave Luckin a 7.1 per cent gain for the day.
Investors have questioned the company's sacrifice of profits in favor of a cash-burn strategy at the same time as the rocky China-US trade relationship weighs on global markets.
The Chinese startup is seeking to overtake Starbucks, opening more stores in two years than the industry giant has in 20 years.
Luckin's 7.1 per cent decline from its offering price of US$17 per share - to US$15.79 as of Thursday's close - isn't as bad as the performance from ride-hailing company Lyft, which is down 20 per cent from its offering price of US$72 in late March.
But it's a frustration for market watchers such as Hedgeye Risk Management analyst Howard Penney, who last week projected 50 per cent upside for the stock.
BLOOMBERG
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Luckin Coffee squeezing into Chinese juice market
sg.finance.yahoo.com
AMSTERDAM (AP) — Luckin Coffee is squeezing into the juice business.
The Chinese rival to Starbucks is establishing a joint venture with Dutch-headquartered agricultural goods producer and seller Louis Dreyfus Company to develop a Luckin Juice business in China.
The companies signed an agreement Thursday in Singapore to set up the business which will sell orange, lemon and apple juices.
The joint venture also plans to bottle and brand other fruit and vegetable juices.
The companies say Luckin Coffee stores will be important sales outlets for the "not from concentrate" juices.
Luckin, which opened its first store in Beijing less than two years ago, has more than 2,300 locations and plans to surpass the 3,700 stores Starbucks has in China by the end of the year.
James Zhou, global vice president and regional head for Louis Dreyfus Company in North Asia, said the joint venture was a good fit.
"Our areas of expertise are totally complementary, with LDC's know-how in managing a sustainable juice value chain and Luckin's knowledge of the Chinese consumer, marketing and digital platform know-how and established consumer base," he said.
sg.finance.yahoo.com
AMSTERDAM (AP) — Luckin Coffee is squeezing into the juice business.
The Chinese rival to Starbucks is establishing a joint venture with Dutch-headquartered agricultural goods producer and seller Louis Dreyfus Company to develop a Luckin Juice business in China.
The companies signed an agreement Thursday in Singapore to set up the business which will sell orange, lemon and apple juices.
The joint venture also plans to bottle and brand other fruit and vegetable juices.
The companies say Luckin Coffee stores will be important sales outlets for the "not from concentrate" juices.
Luckin, which opened its first store in Beijing less than two years ago, has more than 2,300 locations and plans to surpass the 3,700 stores Starbucks has in China by the end of the year.
James Zhou, global vice president and regional head for Louis Dreyfus Company in North Asia, said the joint venture was a good fit.
"Our areas of expertise are totally complementary, with LDC's know-how in managing a sustainable juice value chain and Luckin's knowledge of the Chinese consumer, marketing and digital platform know-how and established consumer base," he said.
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I wonder how many other 'strategic investments' in China does Auntie Ho have?
Because it's going to get a lot worse.
Their strategy is Looong term investment....many they lose & few they win; after all, they have one of the best source of funds on this entire earth. We have free flowing coffee in some cafe..they have FREE FLOWING money from CPF. Every second on the clock..somebody is working & contributing to CPF BANK.
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Something tells me you're not at Eu Tong Sen Street anymore.
I wonder how many other 'strategic investments' in China does Auntie Ho have?
Because it's going to get a lot worse.
Temasek have so much cash on hand. Cant expect her to put under the pillow.
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When will they distribute marijuana?
/arc-anglerfish-arc2-prod-tronc.s3.amazonaws.com/public/O74AHP44DVFWBENJ3UZTSAB7SA.jpg "Marijuana expansion")
Marijuana expansion
Yasmin Pena trims excess leaves from marijuana plants at Cresco Labs medical marijuana cultivation facility, August 8, 2018, in Joliet. (Erin Hooley / Chicago Tribune)
1 / 17
When marijuana shops open their doors to the public in January, shoppers at the back of the line might notice something missing once they get inside: the weed.
Marijuana expansion
Yasmin Pena trims excess leaves from marijuana plants at Cresco Labs medical marijuana cultivation facility, August 8, 2018, in Joliet. (Erin Hooley / Chicago Tribune)
1 / 17
When marijuana shops open their doors to the public in January, shoppers at the back of the line might notice something missing once they get inside: the weed.
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I also dunch know where I AmSomething tells me you're not at Eu Tong Sen Street anymore.
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