The SEC filing today for KHARAFI & SONS purchases yesterday (6/27/07)amount to additional 235,700 shares. Total of 8,499,247. According to the ticker today, another 100,000+ were purchased as well.
Kharafi has trump card when dealing with KKD corporate. Damn, no wonder the margins on franchising are slipping so badly. They used to be just like printing money. And KK Supply? Why slipping margins all of a sudden. Maybe The Sheik gets everything at costs. "just have that smart Doug Muir guy hide it in the financials, they aren't ever going to be S.O. compliant!"
>>Anyone who knows how private equity works knows that at these levels a deal simply cannot be done because we'd be talking about way too much leverage.<<
Meme I respectfully disagree. The Sheik could do it if he wanted, but it goes back to my point: "Why would he run the share price up if in full view of the market if he really wanted to buy the company". The answer is, he doesn't. And because I know of no other ' billionaire rich guy' that is in pursuit of this piece of overglazed lard (despite the nine or ten rediculous Buffet rumors that we've seen on this board) , I would say that your statements are accurate, but only with these caveats. It's true, the Sheik could just be one stupid muthafugga, and it's within the realm of the possible that he runs the sp up prior to making a bid for the company when there are no other suitors. Do they marry cousins over there in those royal families?
>>it's gonna be easy money back up to $14!!! :o) <<
My 'short KKD above 11' recommendation still stands at this point. I'm watching the charts to consider a review. My current bias is downward but we'll see.
>>Would you ever concede defeat, or at least recognize that Krispy is no longer a good short.<<
I said 4 years ago that I would completely cover my KKD short when there is a true operational turnaround, when people start going to KKD specifically for the coffee, or when I can use the pennies in my penny jar.
In the meantime, I disagree. I think KKD is a GREAT short. In fact, it's such a great short that it's often very hard to find shares...
>>Those that shorted in the $30s or $40s, they are either out (and have been out for a while), or they kept on shorting, reducing their cost basis<<
I shorted above 40 and I'm still here. I'm the original 'short above 40' guy...then I covered most of my position at 6-6.50, and became the 'short above 11' guy. So far its all worked like a charm. Pretty simple recipe to follow too, don't you think? What's so hard about shorting this stock? I still don't understand your argument...basically there's one rich arab guy holding the sp up...you call THAT a good long play? LOL
Well you think it was him or his 'managers' that the Kuwaiti regulators wanted to ban? I'm not sure myself, but what I do know is that there is ample indication that are stock manipulators, whoever runs the day-to-day money.
>>How much would you lose if they announce a buyout at $15 a share?<<
Why would anyone run the shares up on the public market before making a bid for the whole company? You actually think he's THAT stupid? No, unfortunately I have to conclude that his game is the same as the one that made the Kuwaiti market regulators want to ban him from all trading for 6 years. Manipulation, pure and simple.