The faster Chagee expands by opening up new stores, the faster its burns its own free cashflow
The faster Chagee expands by opening up new stores, the faster its burns its own free cashflow, Chagee managed to generate a lot of free cashflow from their IPO this year at the issue price of $28
With the rate of Chagee opening up multiple new stores in both China and Southeast asia, some of the stores might not even be generating profits after deducting rental, and manpower costs
I predict Chagee owner might proceeds with a rights issue somewhere between year 2026 and 2027 to raise more cash from its investors due to its reckless move in expanding of new stores and resulting in massive losses
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105425901 : bruh. companies get their capital via the primary market not through IPO secondary market. (of which chagee got 400 plus million of capital)
secondly how does a company expand without using freecashflow? Your argument does not make sense at all and is only base on share price dropping thus the business must be bad (efficient market theory).
MrYuan : Can you predict approximately what will happen on December 31?
ScorpioRebelliousTV OP MrYuan : I estimate that Chagee's stock price will fall below 14 this year. This company has no potential, and from a long-term perspective, it is not viable. I advise you not to buy it and instead use the money to invest in companies with greater growth potential.
MrYuan ScorpioRebelliousTV OP : Received, and it also counts as being added to the collection.
Bluechipminus3 ScorpioRebelliousTV OP : He is either someone who got stuck after buying or a shareholder. Haven't you noticed him constantly encouraging others not to sell? It's always the same group of people going back and forth.
ScorpioRebelliousTV OP Bluechipminus3 : Those who were stuck in the position should have heeded my advice to cut losses at Chagee's $23. If they had redirected their funds into better-performing stocks at that time, they might have already recouped their losses. This group stubbornly refused, and I am truly astonished by such behavior.
Well, Chagee is currently at 14. With the next earnings report due in 30 days, there is a significant likelihood that the financial results may fall short of expectations, presenting an opportunity to potentially see Chagee drop below 14.