Citron Research says the company has been inflating sales partly by double counting some of its online programs. Muddy Waters said it decided to bet that the stock will fall after receiving an 89-page anonymous report that accused Luckin of fraud. Short sellers are squaring off over the Chinese beverage chain. It arrived at that conclusion ⦠Our Standards: The Thomson Reuters Trust Principles. X. Citron Research represents the work of a team of investigators, led by Andrew Left. Luckin Coffee Though only founded two years ago, the company quickly expanded in China and now has roughly 4,000 locations. In late January, Block and Left engaged in a heated battle on Twitter over the Chinese coffee shop chain. Andrew Left canât say that Carson Block didnât warn him. Luckin said in the statement that the ⦠In a tweet posted on Saturday, Citron said that app download figures, other data and calls with competitors confirm Luckinâs financial numbers. “I don’t think that report is correct,” Left told Reuters. Shares were down 15.4% at $30.80 in early afternoon. Luckin Coffee has more to worry about than the coronavirus. However, investors should still hear them out to ⦠Citron Research January 31, 2020 Another short-seller, Citron Research, disagreed with the report. Luckin shares staged a partial recovery on Friday when Left mounted a defense of its fundamentals via Twitter and said his fund had bought the stock. NEW YORK (Reuters) - China-based Luckin Coffee Inc's. This copy is for your personal, non-commercial use only. Better known for his short bets, Left, who is also editor of the online investment newsletter Citron Research, has come out in defense of Luckinâs stock, which his fund owns. shares could double in price after it overcomes the negative impact of the coronavirus outbreak and a widely publicized bearish bet against its stock, according to Andrew Left, managing partner at hedge fund Citron Capital. has more to worry about than the coronavirus. The chain has temporarily closed stores in China in response to the coronavirus outbreak. Its stock slumped as much as 27% on Friday after hedge fund Muddy Waters said it had sold short the shares of the Chinese challenger to Starbucks SBUX.O, citing an anonymous report that questioned the coffee chain's financials. Citron cited data from âBiz Con China," referring to Business Connect China (BCC), a Shanghai-based expert-network company that also sells data on listed, Chinese-domiciled companies. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. (Bloomberg) -- Muddy Waters Capitalâs CEO Carson Block finally bested fellow short seller Andrew Left of Citron Research when Luckin Coffee Inc. disclosed Thursday that its board is investigating reports that senior executives and employees fabricated transactions -- sending its stock plunging. See here for a complete list of exchanges and delays. Mr. Left is a private investor with 18 years trading experience. Luckin has denied all allegations in the anonymous report. Muddy Waters said it has bet against the coffee chain after receiving an anonymous report on the stock, but Citron Research said that rather than selling Luckin short, it is holding the shares. UPDATE: Citron Research long Luckin Coffee Inc. (LK) Article Related Articles ( 4 ) Stock Quotes (1) Comments (0) FREE Breaking News Alerts from StreetInsider.com! However, another short seller, Citron Research, defended Luckin and questioned the accuracy of the report. The disclosure of the fraud by Luckin Coffee (NASDAQ: LK) has shaken the faith of investors in Chinese companies listed on United States exchanges, Citron Research founder Andrew Left ⦠NEW YORK (Reuters) - China-based Luckin Coffee Inc's LK.O shares could double in price after it overcomes the negative impact of the coronavirus outbreak and a widely publicized bearish bet against its stock, according to Andrew Left, managing partner at hedge fund Citron Capital. The shop closures and movement restrictions due to the spreading coronavirus are putting a damper on Luckin’s first-quarter results, brokerage Needham said in a note on Tuesday. On January 31, Citron Research tweeted out a rapid response to a detailed short report alleging fraud in Luckin Coffeeâs (LK) sales numbers. Starbucks (SBUX) also closed coffee shops in the country. About 30% of Luckin’s available shares have been sold short, with the dollar value of these bearish bets at $951 million, according to financial analytics firm S3 Partners. All quotes delayed a minimum of 15 minutes. It believed that Luckin Coffee business was on fire in China. We've detected you are on Internet Explorer. , citing an anonymous report that questioned the coffee chain's financials. âOur past research has shown that a company that receives multiple short seller reports tends to ultimately be found out as a fraud.â Andrew Left of Citron Research, for example, had backed Luckin until its downfall. Comme bien souvent, on se retrouve avec des informations contradictoires, complètement orthogonales.