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Krispy Kreme Doughnuts, Inc. Message Board

  • detail_devil detail_devil Jan 19, 2005 9:31 AM Flag

    Di_Vur_Se-_Fi

    I've been short for ages (34 up to 49 and hanging around nominally since high teens). Question: How can appoitment of KZC be anything but bad for current shareholders? I view it as confirmation that equity is wiped out and that the banks, who will convert debt to equity, forced this in an attempt to preserve as good an asset as is possible under the circumstances.

    I know from experience that KZC fees will be 7-figures per month. Legal will be another 7-figure monthly hit. Cash Flow will be hughly negative.

    What is the rational for things getting better from here? I don't see it?

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    • Yes, and too bad that you haven't packed your bags, patio and all, and haven't left, either. The only reason you stay here is because you have no life, and no stocks. You're like a lonely old lady who has no one to talk to, and no one talks to you, but you feel the need to go on here just to feel like you belong and are accepted.

    • """I guess A59 whatever is still here"""

      i guess loudmouth basher jerkwad(tm) whatever is still here

      and he has joined The Great Alias Conspiracy Theory. Just what we needed -- yet another jerk spouting off

    • I guess A59 whatever is still here.

    • """ but how could he really know at this point? """

      a question i've often asked about you, but that concept never stopped you from spouting off....

    • time, obviously, will tell; but how could he really know at this point?

    • Well, they had $40 million in pp&e during the first two quarters; they opened 11 company stores during this time period. That's nearly $4 million per store! kkd likely leases the land and owns the building, so the land wouldn't even show up on the bs.

      What else is there?

      Equipment.

      Who builds the equipment? kkd

      How is the equipment valued when it goes on the bs?

      Well, they add up all the cost inputs on the equipment (labor, materials, etc...) and say that is what it's worth.

      How do we know they're not burying extraneous costs in equipment?

      Note: Equipment went up by over $16 million during the period, despite the fact that equipment from 6 of the stores was sold back to GE Capital.

    • """how come this guy.... risk(sic) his reputation with these statements that they are FCF postitive and not going towards bankruptcy? """

      have you considered the possibility that he is actually telling the truth?

      just a thought

    • di vur si fy,

      not withstanding the guy who insulted you or your valuation which i think is in the ballpark, i too am worried about this issue: how come this guy who is busy with enron anyway and is known for having managed its bankruptcy, risk his reputation with these statements that they are FCF postitive and not going towards bankruptcy?

      meme

    • Right, but clearly a lot of the pp&e was really flowing out to build new stores. That will be stanched.

      And by now the forensic accountants ought to have some idea of how much expense was being capitalized, which Weil Gotshal has undoubtedly told Cooper.

      I take last night's interviews as putting on a good face to keep everybody on board until he figures out what to do. But it seems to me that if he knew there was really no positive cash flow at all, he would have been putting himself in too much legal jeopardy to make the statement he made.

    • Yes, if they can get pp&e to zero, there is some cashflow. However, it has been my contention for some time that pp&e is stuffed with capitalized expenses, i.e. if pp&e goes to zero, the expenses go to the income statement and FREE cashflow is right back to where you started.

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