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Krispy Kreme Doughnuts, Inc. Message Board

  • balljarco balljarco Dec 1, 2005 1:36 PM Flag

    I believe Mr. Cooper and banks

    There have been plenty of reasons to doubt whether KKD will be successfully turned around. Mr. Coopers' quoted statements from yesterday strike me as being sincere:

    "The whole objective here is to ensure that when they come out, the statements are the statements," he said. "Our plan is to get it right and not be careless and rush it."

    Banks have not yet pulled the plug on KKD, and I assume that they have compliled non-public KKD financial data.

    My sense is that the restatements will include a big one time impairment charge. This is not unusual. Same thing happen to Tyco following the Koslowski scandal. Company restated, took its hits, then the company continued as a going concern and stock recovered.

    My prediction is that the release of the restated financials in early 06 will be anti-climactic and that much of the bad news will have already been factored into today's stock price.

    By mid 2006, I expect to see KKD stock at $10+.

    This is one man's view of how events will unfold over the next half year.

    Let the stone-throwing and name-calling begin.

    Good day.

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    • <<<< I smell another conspiracy theory now.

      The restatement is simple, but Cooper and PWC have conspired to make it seem complicated.

      Cooper secretely working for banks --> PWC secretly working for Cooper. Defacto PWC working for banks and not company/shareholders.

      It's been fun this morning. Got to go now. >>>>

      According to the shorts its all complicated and deceptive.

      Their MO is dazzle us with their BS.


    • <<<<< Balljarco, maybe your scenario can be reconciled with each particular fact one at a time, but I don't think it can be reconciled with all the facts simultaneously.

      For example, as I understand your scenario, the lenders are in such a forebearing mood because they are confident KKD has enough revenue or collateral to pay them back. Let's suppose that's the case, AND that Cooper is working exclusively for the stockholders and has no special relationship with any lenders. Then why did he borrow money from distressed-lending funds on terms that are extremely disadvantageous to the common stockholders, if the finances are strong enough that he could have gotten a normal loan from a regular bank? >>>>

      KKD has borrowed money from regular banks. Do your research before you spout.


    • "KKD is a special turn around situation that comes along every blue moon.

      The prize goes to the investor with the savvy to buy it at the right price.

      The strong brand and high profile will send this stock price higher"

      Arb, what is the right price to buy? I am already planning to add to my portfolio Monday. Is that a good idea? If not, when? Please don't be like Nostradamus, with cryptic predictions. Just tell us, straight up.

    • <<<< serious conceptual issues
      Just how long should a team of world class accountants have to stare at a serious conceptual issue or two or three before making a call? >>>>

      As long as it takes to do the job right, and to the long term benefit of the shareholders (including Cooper as a shareholder/warrant owner).


    • <<<< balljarco,

      Why do you give Krispy Kreme the benefit of the doubt? Seems like you bend backwards to "explain the minor issues" of this company. What have they done to own your trust?? If this was another company in the exact same situation, would you be inclined to invest in them? >>>>

      KKD is a special turn around situation that comes along every blue moon.

      The prize goes to the investor with the savvy to buy it at the right price.

      The strong brand and high profile will send this stock price higher.


    • <<<<< Horse swapping. In exchange for their patience with the restated financials, lenders want to have some say in who the next CEO will be. It shows that the lenders have confidence in Cooper and have bought into his reasons for the delayed finncals. Coopers is engaged/compensated by the company/shareholders.

      There is no secret (illegal) compensation arrangement between Cooper and lenders. >>>>


      Cooper's actions tell us he is confortable that KKD will be turned around.


    • <<<< The lenders to KKD have a contract that says they can put KKD into default if Cooper is replaced without their permission and you think Cooper is working for the shareholders. How can one respond to that kind of willful blindness with anything but sarcasm? >>>>

      Everything is negotiable, as you have already seen.

      Cooper wants his 1.2 million shares at $7.75 "success fee."


    • <<<< "Both Cooper and accounting firm are being very cautious. "

      And in the process, they are putting KKD in risk of defaulting the loan and the stock being delisted.

      I don't see a sense of urgency from Cooper's side, do you? >>>>

      Come on, you are smarter than this.

      Cooper knows the score, you will find out the score much later on the 10 o'clock news.


    • Hey didn't I see Cooper at the Circus the other day juggling about 10 or 11 shoes all at the same time? He really IS worth the money...that's the best I've seen...

      What happens when one of them drops, I wonder...

    • So essentially you're looking for some sort of short squeeze. I was hoping you had something new. If you're looking for a squeeze check OVTI.

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