SONO - 3 Stocks I Bought This Week and 1 Stock I Sold
I was feeling peckish this week so I did a little buying on Wednesday. I also took advantage of Luckin Coffee (NASDAQ: LK) finally trading again after being halted six weeks ago. I sold my entire position in the once promising Chinese coffee chain -- at a beefy loss, as you can probably imagine.
I expressed my frustration with Luckin Coffee a couple of weeks into the trading halt. The exchange nixed trading on the shares after management revealed that it was inflating sales by a shockingly high margin. I don't always bail on a stock when the going gets rough, but this just isn't going to end well. It's not like the stock will ever return to its earlier highs, because the fundamentals of Luckin Coffee were purely fictional. Luckin Coffee has an intriguing model, but it's only an average business at best. The brand is now tarnished, and that's something that isn't easy to bounce back from -- even if we now know that the bar wasn't as high as Luckin Coffee tricked us into believing.
I more than offset the Luckin Coffee by initiating a position in Costco Wholesale (NASDAQ: COST) and adding to my positions in Pinterest (NYSE: PINS) and Sonos (NASDAQ: SONO). Let's go over these purchases.