Good morning everyone…

Ellen and I are in Mexico City for a wedding.

Yes, the tacos have been flying into our mouths.

Last week Ellen and I went to see ‘Dumb Money’. Save your money! Best to go read ‘The Revolution That Wasn’t’. I had Spencer the author on my podcast last year to walk through the book and the Gamestop era.

The whole Gamestop, AMC and Wall Street Bets meme era would have made more sense if the companies were actually great and/and or well run… but they were goners before the ‘diamonds hands’ and ‘APES’ came along and they have been goners since. The execs at Gamestop and AMC got rich and a hedge fund that stood in front of internet scale was wiped out. The end.

For the last few years a more interesting story has been playing out on the Luckin Coffee stream on Stocktwits. Head of community Tommy Tranfo went way back in the stream to piece it together. Read on below…

The Story of Luckin Coffee

How a Stocktwits Community Made Millions from Buying the Dip

There is a lie that is repeated in finance, "you aren't smart enough to beat the market or have an edge."

Well this is a story of a community who defied the odds and found their edge.

First off, we acknowledge that beating the market and having an advantage is incredibly challenging. No one doubts that. However, a lot of things in life are incredibly challenging yet through community and commitment people achieve great things every day.

This is the mentality that people on the Luckin Coffee stream on Stocktwits had and as of now, they have been rewarded massively for it.

So, let's explain how "Luckinaires" came to be.

When Luckin Coffee IPOd in May of 2019 it was hailed as the Starbucks of China and the stock immediately got off to a hot start. Within a year it would reach what would be its all time highs, soaring 145% above its IPO price to $50.02.

The narrative at the time was, "stick this in your IRA and just wait." But oh boy, did things take a turn.

Out of nowhere reports started dropping accusing Luckin of accounting fraud.. and they were right!

The company plead guilty to fabricating over $300 million in false sales. As a result, it was delisted from the Nasdaq and they were forced to pay hundreds of millions in fines leading the company straight into bankruptcy and then ultimately irrelevancy... right?

Well, no.

As it turns out their customers in China didn't really care about accounting fraud and they would continue to visit their stores and buy their product.

But who could really trust those revenue numbers again after what the company did the first time? Are we just going to get fooled again? These were the thoughts of most investors at the time who were incredibly skeptical about buying OTC shares of this Chinese company that has already been guilty of fraud.

No one wanted to touch this stock, especially in early 2021 when covid fears still ran rampant.

This is where the Stocktwits community found their edge. If they could actually know that the revenue numbers and other data that was coming from this company was legit, they would have a once in a lifetime buying opportunity. So, they went to work.

Led by the powerful HZadam the community had boots on the ground and would go store to store reporting directing sales numbers and logging them in spreadsheets.

Through this effort the Luckin Coffee stream became one of the most active and bullish streams within the entire Stocktwits platform.

For those who bought the dip the early, they are nearly up 600% on their investment and they still believe that the sky is the limit for Luckin Coffee. In fact, HZadam just updated his spreadsheet as of this morning!

If you are skeptical about the company or want to learn more, the stream would love to engage with you! Give them a shout!

You can find them here on the $LKNCY stream.

Have a great day.