Luckin Coffee Stock News and Forecast: Lucky for some as stock surges 16% on relisting talk
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UPGRADE- Luckin Coffee stock surges by 16% on Wednesday.
- LKNCY stock move fueled by talk of Nasdaq relisting.
- Luckin Coffee last traded on the Nasdaq in June 2020.
Luckin Coffee (LKNCY) stock spiked on Wednesday as retail interest rose once more in the name after news that the beleagured company is trying to relist on the NASDAQ. The shares spiked to trade as high as $12.70 at one stage before losing some steam by the close and falling back to $11.50. That was still enough for a 16% gain on the day. The earlier intraday move had breached the 200-day moving average at $11.83.
Luckin Coffee Stock News
So why the big interest all of a sudden? Luckin after all had delisted from the NASDAQ in June 2020 on the back of allegations of financial fraud, but the stock continues to trade on the OTC market. An article from the Financial Times has jolted investor interest as it reports that Luckin Coffee is looking into plans to relist on the Nasdaq in 2022. The article also states that Luckin is meeting with potential investors and advisers in an effort to raise capital.
Just in case you are not familiar with the story, Luckin Coffee is a Chinese-based firm that operates a chain of coffee shops akin to Starbucks (SBUX). It was delisted from the NASDAQ in June 2020 as allegations of financial fraud mounted. The company filed for bankruptcy protection in the US in February 2021 and had paid a $180 million penalty to the SEC in December 2020. The $180 million penalty was to settle SEC accounting fraud charges. The company recently announced that its creditors approved a $460 million debt restructuring plan.
Luckin Coffee Stock Forecast
We must put in a caveat here: this is very high-risk trading. Many retail investors like high risk, but note the news above and the fact that this is essentially an unlisted security, meaning even greater risks are involved in trading it.
Luckin Coffee (LKNCY) chart, daily
- Luckin Coffee stock surges by 16% on Wednesday.
- LKNCY stock move fueled by talk of Nasdaq relisting.
- Luckin Coffee last traded on the Nasdaq in June 2020.
Luckin Coffee (LKNCY) stock spiked on Wednesday as retail interest rose once more in the name after news that the beleagured company is trying to relist on the NASDAQ. The shares spiked to trade as high as $12.70 at one stage before losing some steam by the close and falling back to $11.50. That was still enough for a 16% gain on the day. The earlier intraday move had breached the 200-day moving average at $11.83.
Luckin Coffee Stock News
So why the big interest all of a sudden? Luckin after all had delisted from the NASDAQ in June 2020 on the back of allegations of financial fraud, but the stock continues to trade on the OTC market. An article from the Financial Times has jolted investor interest as it reports that Luckin Coffee is looking into plans to relist on the Nasdaq in 2022. The article also states that Luckin is meeting with potential investors and advisers in an effort to raise capital.
Just in case you are not familiar with the story, Luckin Coffee is a Chinese-based firm that operates a chain of coffee shops akin to Starbucks (SBUX). It was delisted from the NASDAQ in June 2020 as allegations of financial fraud mounted. The company filed for bankruptcy protection in the US in February 2021 and had paid a $180 million penalty to the SEC in December 2020. The $180 million penalty was to settle SEC accounting fraud charges. The company recently announced that its creditors approved a $460 million debt restructuring plan.
Luckin Coffee Stock Forecast
We must put in a caveat here: this is very high-risk trading. Many retail investors like high risk, but note the news above and the fact that this is essentially an unlisted security, meaning even greater risks are involved in trading it.
Luckin Coffee (LKNCY) chart, daily
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