This is my 3SOF contest entry although I don't own any shares personally. Friday broke out of a descending trendline that reaches all the way back to early July that was once support and then resistance.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=9101;image)
I would normally wait for a continuation of the breakout on such a down and out stock like KKD but look at what the intraday shows. More than half the day's volume happened in the last hour of the trading day, with almost all of that volume actually occuring within about a 40 minute period. The highest amount happened just before the market close. I can't find any news that would precipitate such a sudden increase in volume and spike in price. Something brewing at KKD other than delicious warm beverages and grease spattering fried doughnuts? I am very curious to see what Monday reveals.
(http://www.3stocksonfire.org/trading/index.php?action=dlattach;attach=9099;image)
Yahoo has short % of Float (as of 11-Oct-05) at 46.5%. Could this be short covering happening? Would there be more current short numbers available somewhere else?
I was browsing charts and saw this guy. Chart looks prime to me.
cough cough
The problem with KKD is that due to health issues, they are more limited in their growth than other food stocks.
People are less likely to have a Krispy Kreme every day than something more healthy. That's always been a reservation of mine with this stock.
I avoid any crap food like that myself. But +10-15% safely in 2-3 days is all I saw the ticker for
Looks good to 5.70ish then 6 if it can break through.
Bounced down off of 5.75. I think this thing might break 6 on the next uptrend
This one looks stronger then I expected. I am going to be watching closely today for sure.
We have a breakout here!
Wow! great going! You are definitly King of the Donut in my book!
hehe, I guess I will take that as a compliment. I am suprised this thing ran so hard. Earnings soon? Anyway I would say this has to be a great short in two days.
KKD up 18% on new CEO Daryl Brewster taking over the company. KKD may start to turn around soon. ;D
Prudential Sweet Talks Krispy Kreme
Krispy Kreme Doughnuts (KKD) shares rose nearly 7% on Oct. 27, after a Prudential analyst suggested that the accounting scandal-plagued company might make a comeback.
Prudential Equity Group LLC analyst Howard W. Penney started the doughnut maker with an overweight opinion, explaining that Krispy Kreme is under new management and likely to finally file its financials for fiscal 2006 on Oct. 31.
"KKD is a unique restaurant company that possesses high brand loyalty and a business model that can produce strong cash flows and very high returns on invested capital," Penney said in a research note Oct. 26.
Shares rose 6.7% to $9.86 per share the next day. Penney had set a 12- to 18-month target on the stock at $15 per share.
After going public in April 2000, Krispy Kreme rocketed to a start with much ballyhoo (even from former President Bill Clinton) and rampant store openings. Then the doughnut maker started losing money. In May 2004, the CEO at the time, Scott Livengood, blamed his travails on the fad against eating carbohydrates.
Two months later, the Securities and Exchange Commission made an informal inquiry about Krispy Kreme's buybacks of several franchises. By this time the stock had plunged to around $18 from its July 2000 price of $71 per share, according to Yahoo. Investors who bought shares between March 2001 and April 2005 sued on the grounds that Krispy Kreme had misled them about its earnings, wrote Penney.
The doughnut maker restated its financials for much of fiscal 2004 in January 2005. It also hired Stephen Cooper to replace Livengood, persuaded a consortium of financial institutions to give it $225 million in new financing, and warned investors not to rely on its published financials between fiscal 2001 and the first three quarters of 2005, wrote Penney.
The changes have continued since. Back in March, the board hired Daryl G. Brewster as President and CEO. The company has closed nearly 100 stores, but continues operating nearly 400 all over the U.S. and in eight countries. And Krispy Kreme has hammered out agreements to develop more locations over the next five years in areas such as Saudi Arabia, Egypt, Kuwait and the United Arab Emirates, wrote Penney.
Kramer actually considers this a buy now.
Looks to have bounced off support from previous breakout of $9. Three magic lines? Terliso?
GLTA...Jody
New International Strategy Results in Earnings Surprise.......
Thursday's session revolved around President Bush's speech
regarding a 5 year interest rate freeze on subprime loans with
distinct characteristics to thwart many that are at risk of foreclosure.
The decision is one that will bring increased debate about
morals and the bailing out of some who should have never been
able to afford homes originally without the adjustable rate mortgages.
The President and Secretary Paulson noted that the freeze will stave
off foreclosures which would cause increased loss of value from investors and
homeowners alike. Either way, the government is trying to do something, which is commendable
and should boost market confidence, but the moral dilemma will continue as will debates about
government intervention into private industry.
While the government attempts to turnaround the mortgage and lending problems, another small
cap name saw increased attention due to their turnaround.
Krispy Kreme Doughnuts, Inc. (KKD) announced their third quarter results on Thursday. The
Company reported revenues decreased 11.7% to $103.4 million compared to $117.1 million in
the third quarter of last year. Company Stores revenues decreased 11.3% to $72.8 million, while
Franchise revenues were flat at $5.7 million and KK Supply Chain revenues decreased 15.1%
to $24.9 million.
But more importantly, the Company reported net loss for the third quarter of $798,000, or $0.01
per diluted share, compared to a net loss of $7.2 million, or $0.12 per diluted share, in the comparable
period last year. The Company continues to streamline their operations and close down
underperforming locations. They also are implementing their spoke and hub strategy which saw
20 new satellites open during the quarter, continued reduction in general and administrative expenses,
and reduced supply chain costs by outsourcing their coffee supply.
What was also interesting was their international numbers. Krispy Kreme has increased their
international franchisee sales increase by 48% year over year. While the American movement to
lose weight and ward off weight related diseases, the movement isn't happening in other nations,
especially in the Asian countries.
"As we look past the third quarter, we continue to focus on improving Company shop performance,
driving the hub and spoke model, growing our international franchise business, refranchising
certain domestic markets and reducing costs to help offset rising commodity prices," said
Daryl Brewster, the Company's President and Chief Executive Officer, in the earnings release.
Following the news, shares gained some 27% on 4.45 million shares traded. With the Company
continuing their international expansion as well as contracting domestically, more profitably locations
could become the result. With that in mind, investors would be wise to watch.
Krispy Kreme Shares Popped: What You Need to Know...
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes...just in case they're material to our investing thesis.
What: Krispy Kreme Doughnuts (NYSE: KKD) popped 12% in intraday trading today as investors feasted on a tasty plan to drive higher, more consistent profits.
So what: The company used its annual shareholders' meeting to present a plan to boost revenue and profits. During the next three quarters, Krispy Kreme expects to open 45 shops, launch three signature coffee blends, and expand retail distribution of its baked goods. Management hopes the new coffee offerings will bring more customers into their shops.
Now what: The company just completed its first profitable year since 2004. In the most recent quarter, revenue jumped up 14% and EPS more than doubled as the company cut its operating and interest expenses. At a P/E ratio of 37 times, investors appear to be expecting the new plan to add more icing to the profit doughnut.
A Stock Shaking the Market...
A mighty temblor
Sweet-treats maker Krispy Kreme Doughnuts put on a spectacular earnings show last quarter, ringing up higher sales, widening margins, and generating lots more free cash flow. In fact, over the past year, as GAAP earnings have grown fivefold, owner's earnings have doubled. At least the numbers are moving in the right direction and the dark days of yesteryear seem a distant bad memory.
Day's Range: 8.25 - 9.15
52wk Range: 3.28 - 9.15
Volume: 3,568,817
Avg Vol (3m): 1,506,920
Market Cap: 606.42M
P/E (ttm): 49.34
EPS (ttm): 0.18
Div & Yield: N/A (N/A)
Technicals
Percentage Gainer
Last Price Quote is:
11.98%above 13-day EMA
28.02%above 50-day EMA
RS Rating: 8
This has held the gap and used 13 day as support...