Luckin Coffee needs a pick-me up – The National

Luckin Coffee needs a pick-me up – The National

Luckin Coffee needs a pick-me up. China's Luckin Coffee hasn't been having much luck lately.. Perhaps an attack by short-sellers branding your business a fraud.. Shares in Nasdaq-listed Luckin Coffee plummeted 11 per cent on Friday after Carson Block's Muddy Waters Capital tweeted that it has a short on the stock, citing an unattributed 89-page report it had received that alleged the chain has accounting issues and a broken business model.. Luckin shares were down as much as 27 per cent before rival short-selling firm Citron Research defended the company, saying it was long the stock and the coffee chain's business in China was "on fire".. The coffee chain has a couple of key advantages that should enable it to ride out the disruption.. Unlike Starbucks, which prides itself on its cozy seating areas, Luckin mostly sells coffee for consumption outside.. Seattle-based Starbucks has closed more than half its 4,292 outlets in China because of the viral outbreak.. The coffee chain raised a combined $778 million (Dh2.85bn) from an additional share sale and a convertible bond offering, more than the $645 million it took in from its May initial public offering.. The stock reached a high of $50.02 on January