Investment Thesis
We found Muddy Waters' short report on Luckin Coffee (NASDAQ: LK) not well-justified. The credibility of the report and analyses embedded is questionable. Investors should not panic over the report and can wait till the Q4 results, and a current sell-off may present a good entry point.
Muddy Waters: The Short Thesis on Luckin
On January 31, Muddy Waters disclosed a short position on LK. The short thesis led to a major sell-off in the company's shares. Together with the recent Coronavirus breakout in China, LK share price is down nearly 40%