(Bloomberg) -- Muddy Waters Capital’s 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. In late January, Block and Left engaged in a heated battle on Twitter over the Chinese coffee shop chain.Luckin shares collapsed as much as 81%, the most intraday since its IPO last May.Back on Jan. 31, Block tweeted that it had a short on Luckin after receiving what it called a “credible,” unattributed 89-page report that alleged accounting issues with the chain, and a broken business model. Less than two hours later, Left defended the coffee chain in a tweet of its own, saying the findings didn’t mesh with recent data indicating that Luckin’s business is “on fire” in China.“There was a piece of research circulated by an anonymous...
The novel coronavirus is already proving to be the biggest economic shock to the world economy since the Great Financial Crisis of 2008. Perhaps it will be even worse than that by the time all is said and done, with a number of stocks to sell out there. In any case, the S&P 500 fell 20% in the first quarter. And the U.S. wasn't alone; global markets got hammered in unison. It wasn't just equities either. Bonds, foreign exchange, and even gold and crypto-currencies experienced historic levels of volatility. April got off to no better of a start, with the S&P sliding another 4.4% on Wednesday.So, with markets in turmoil, what are investors to do?A key thing at this point is to determine which of your holdings can survive a prolonged economic shutdown, and which cannot. Balance sheets and liquidity are the key to picking good turnaround candidates out of the...
Amidst growing global tumult, volatility has had the stock market swinging from extreme bearishness to brief moments of bullishness. And although the general direction is down, sticking to the game plan will pay off in the long run. Investors ought to stake claims in ongoing trends now to maximize returns over the next few years.If anything, a market correction, or even a crash, can create better prices for investors willing to buy and hold. In the technology sector, the increasingly connected world of smart devices (speakers, thermostats and doorbells, to name just a few) will result in strong sales growth for these devices and the systems that power them. While consumers are familiar with these devices as ways to make life more convenient, turning on lights or opening garages with their smartphones, the business applications should appeal to investors.Of course, this connected world needs communication infrastructure to support 5G networks and...
(Bloomberg) -- With just one tweet, U.S. President Donald Trump conjured up the prospect of a global oil alliance to rescue the industry from the worst shock in history. The question is whether it evaporates just as quickly.After the president’s social-media intervention on Thursday, oil traders are frantically assessing whether Saudi Arabia, Russia and possibly even the U.S. -- the world’s three biggest producers -- are poised to strike a once-unthinkable grand bargain to cut daily supplies in unison by 10 million to 15 million barrels.It’s unclear whether it’s feasible -- or even legal -- for such a coalition to come together. Or indeed whether it would be enough to tame the tsunami of unwanted crude now bearing down on world markets, which could be two to three times bigger than the cut touted by Trump.“It’s too little, too late,” said Ed Morse, head of commodities research at Citigroup Inc. “Cuts...
Coronavirus travel fears have temporarily shuttered many hotels around the world. But when those doors reopen, the trend of rampant hotel brand expansion seen in recent years may take on a different look. With the rise of alternative accommodation competitors like Airbnb, hotel companies began to add brands that appealed to different price points as […]...
