Lattes Fuel Luckin Coffee’s Jump

Chinese coffee company and coffeehouse chain Luckin Coffee is back in the news after flying under the radar for the last two years. But don’t worry, it’s not for a bad reason this time. 👍

For those unfamiliar with the company, it was best known for coming public on the Nasdaq stock exchange in May 2019 and being rocked by an accounting scandal shortly after. In early 2020, investigative investment firm MuddyWatersResearch published a report that indicated the company had heavily inflated its sales numbers. 🕵️‍♂️

That investigation caused more investors to look into the company as the COVID-19 pandemic began, forcing Luckin to shut down most of its stores. Ultimately, an internal investigation found that former COO Jian Liu had committed and hidden fraud, and the stock’s decline caused co-founder Charles Lu to default on a margin loan collateralized by Luckin shares. 

As the issues mounted, the company was fined by the Securities and Exchange Commission (SEC) and Chinese regulators, leading to a Chapter 15 bankruptcy filing in February 2021. That allowed it to retrench its operations, settle existing claims, and reach a global settlement of $187.5 million with its angry shareholders. 📝

Since then, CEO Jinyi Guo has been leading the turnaround efforts, with the company reestablishing itself in China and now looking to expand into other countries. Additionally, it’s looking to regain its listing on the Nasdaq, currently trading in the “over-the-counter” (OTC) market in the U.S.

Anyway, as for why the company was trending today. Well, it was coffee sales for a change. ☕

The company recently launched a new partnership with Kweichow Moutai to bring an alcohol-infused latte to its stores. The product set a record on its launch day, selling more than 5.42 million cups. That topped previous hits such as its cheese latte and coconut cloud latte, which sold 1.31 million and 660,000 cups, respectively. 

$LKNCY shares rose more than 5% today as the company continues its steady ascent. 📈

Goodbye SPACs, Hello SPARCs?

While investors have certainly cooled on the idea of special purpose acquisition companies (SPACs), famous hedge funder Bill Ackman is betting they may be open to his spin on the investment vehicle. 🧠

A SPARC is a special purpose acquisition rights company, which operates like a SPAC, acting as a shell to combine with a private company and take it public. However, with a SPARC, investors will know what company the financing vehicle would be used to merge with before they pledge their investments.

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Transportation Stocks Making Moves

Transportation stocks are often on the move, but today, they were especially frisky. So, let’s recap some of the biggest movers from the day. 👇

First up is electric vehicle (EV) maker Rivian Automotive, which fell 23% to 3-month lows. Although the company expects third-quarter revenue to align with Wall Street expectations of $1.29 to $1.33 billion, it surprised investors with a plan to offer $1.5 billion in convertible notes. 

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AMC’s Taylor Swift Boost

Taylor Swift and her “Swifties” are having their time in the sun, bringing rays wherever they go. 🌞

While the NFL is looking to take advantage of Swift’s new potential romance, movie theatre chain AMC also wants to get in on the action, and so far, it appears to be working.

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Canon Pivots From Pics To Chips

The Japanese conglomerate is best known for its printers and cameras but hopes a business pivot will help get its stock price going again. 💡

Today, the company launched a tool that helps manufacture the most advanced semiconductors. Its “nanoimprint lithography” (NIL) system is the company’s attempt to compete with Dutch firm ASML, which leads the extreme ultraviolet (EUV) lithography machine industry. 

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