Aktualisiert: Juni 7
Our mutual fund the Mid-Term and Cap started trading again on Wednesday after a halt because of a temporarily suspended holding called Luckin Coffee. Luckin Coffee was meant to be the fastest growing coffee chain worldwide. But after Muddy Waters Resarch has published a document which has shown that the china based company respectively the COO fabricated sale of 310 Million USD, the stock cracked more than 80% in one day of trading.
More than 1 week later the stock kept dropping wiping out even more of its value. Richard Schäli who is responsible for this damage bought nearly 20'000 shares. Fifteen minutes after the purchase stocks of Luckin got suspended of trading. The shares of Luckin were suspended for more than a month without any press releases. The reason for the suspension was that an internal investigation should make clear if the fraud allegation are true and if the company fabricated even more numbers. One day Nasdaq announced that they have plans to delist Luckin Coffee. Beeing prepared for the worst, Nasdaq announced that shares of Luckin will resume trading, the next day.
With sell orders set Luckin started trading again. The stocks opened at -50% going higher to -30%. But there was no movement on our Broker. We called our Broker (LANG & SCHWARZ) constantly and finally after nearly 35 minutes the stock was able to be traded again. We have sold our shares and Schäli started minimizing losses while daytrading with Luckin and its pricerange.
The fund lost nearly 30% of its value, vanishing 70 thousand swiss francs. The responsibility for this performance goes to Richard Schäli who bought Luckin Shares even though they were alleged with a fraud. We have plans to close the fund at a price of 160 swiss francs. The current value of one share is 100 francs.
If you are a shareholder of the fund please feel free to contact us.
6 month chart (orange) compared to the DAX (grey)