I was using an app to buy partial shares of Luckin Coffee Inc. (LK), and before I could heavily invest in LK the news broke out that there was a financial fraud report occurred for awhile while the chairman of the company was encouraging such a behavior -- nonetheless, the whole incident pushed the stock price of LK way down. Luckily, I bought only around $300 worth of shares of the company since I was testing the water before I would see if I want to heavily go into LK -- the loss wasn't big at all and since then I didn't even take a look at how much I had lost with the app I bought the partial shares of LK with.
Fast forward to today, LK's share price jumps 21% since I last checked, and all because there is a rumor that China's Yum brand (if I remembered correctly) is intending to purchase LK's China assets. I don't know what are these assets, and now I'm curious. Whether this rumor is true or not, LK's share price is now way higher than since their last drop. Last Friday they were at $1.41 per share, but today LK's share price is closing at $2.59 per share.
Investors who are investing in LK are probably now worrying about LK is going to be delisted too since the news last broke that LK's stock exchange had notified them about their decision of going to delist LK. Furthermore, the United States is trying to pass a law in which to delist all Chinese companies that do not report transparently to the United States' whatever authorities (I think it's SEC but I could be wrong). LK could be one of these companies that will get delisted from the U.S. stock exchanges.
Personal opinion: I think I'm more confident with LK now since they fired their CEO/Chairman or whoever got the most say and was running the company fraudulently. Still, I won't buy any more shares from LK since the delisting possibility is still there for LK. I also see LK won't file bankruptcy and still be OK if they don't sell any asset to Yum or whichever corporation (else) because LK is quite popular in China. Furthermore, LK got a lot of locations where they can easily raise the coffee price per cup just a bit and will make money like a bandit.
I won't invest any more money into LK shares unless LK got delisted from the U.S. and then relist elsewhere. Only when LK relists elsewhere that I could have more confidence in my decision in giving LK another chance. Perhaps then, I might heavily invest in LK, but obviously, I will wait and see how all of this will turn out for LK before I'll try to do anything rash on LK. This means, even when LK relists elsewhere, I'll wait a bit before I go strong on LK.