KKD - Sector: Services---Industry: Restaurants

[basonista]

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.



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.

[basonista]

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?

[Wax]

I was browsing charts and saw this guy. Chart looks prime to me.

[Wax]

cough cough

[Flutterbeez]

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.

[Wax]

I avoid any crap food like that myself. But +10-15% safely in 2-3 days is all I saw the ticker for

[Wax]

Looks good to 5.70ish then 6 if it can break through.

[Wax]

Bounced down off of 5.75. I think this thing might break 6 on the next uptrend

[Wax]

This one looks stronger then I expected. I am going to be watching closely today for sure.

[Wax]

We have a breakout here!

[snowcat]

Wow! great going!  You are definitly King of the Donut in my book!

[Wax]

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.

[REALDEALS21]

KKD up 18% on new CEO Daryl Brewster taking over the company. KKD may start to turn around soon. 

[njshiva]

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.

[422fwhp]

Kramer actually considers this a buy now.

Looks to have bounced off support from previous breakout of $9.  Three magic lines? Terliso?

GLTA...Jody