Depends on how much you are looking to invest. Their last FY quarter closes in a couple weeks. I would get in before then. They'll likely have their conf call / release the numbers the first week in March. If it's gonna pop a bit, it'll be from the quarterly numbers. There isnt much difference at buying it at 2.50 vs 2.80 if you're gonna hold it as a turnaround long term play.
Or you can wait until after the numbers to see if you see successive quarters of improvement first. Personally, I have a significant investment in the company. But I did it as a long term investment knowing that the turnaround is gonna take a long time. That debt load (approx $50million announced last Dec) is going to take a while to payoff.
Last Q they had $15M in Cash Flow from Operations. If they can keep ginning the cash or increase the cash flow from operations that can use $10M per Q to payback the debt. That would be 5 quarters to be debt free leaving $2M per Q for capital improvements. They have been remodeling their old stores and that cycle might be over. So if you drop the $2M into paying off the debt. You might looking real good by the end of FY10.
You got six months for more clarity, but by that time the PPS might not be as attractive. I like the future cash flows and return to the core business. They didn't need to be in Missoula, MT on the most expensive outparcel in town in front of Lowes. The real estate yahoos made off like bandits...
I sold Krispey Kremes as a kid in the South on Sat mornings on street corners to play in baseball tournaments. Get back to their roots in neighborhoods and they will be fine.
Point being. I don't know your timeline, but based on the last conference call this year could shape up all right.
This management team is on the right track. Wall Street just hates this stock because of the growth story gone bad and some "other" issues of years past.
Lastly, Gas Prices have come way down. Unemployment still sucks. But, with lower gas prices people will get a hot Krispey Kreme and a coffee. When gas in $4+ per gallon. Krispey Kremes are going down the gas tank.