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Krispy Kreme Doughnuts, Inc. Message Board

  • shorthighcoverlower shorthighcoverlower Jun 3, 2010 4:21 PM Flag

    KUDOS to MANAGEMENT!! great Q!!!

    They blew away estimates and raised guidance!! Shorts are road kill--they are in for the mother of all short squeezes!! shares are flying high in AH trading!!$5 tomorrow???

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    • I thought for sure with the worsening economic climate, we could see KKD slip back into losses.

      I see now that a conservative management is moving the company back into profitability and a better financial situation.

      Yes, they could have paid down more debt, but they did a lot of that already, enough to take the company out of risk of bankruptcy. If they see better a better return on investment for the cash elsewhere, then they will use it for that purpose.

      Yes, some of the earnings is attributable to the paydown in debt. When you pay off the debt holders, more earnings go to the equity holders.

      Is the stock going up in AH due to short covering? Yes, of course. But the shorts would not be covering if the company's prospects were not improving.

    • Solid report and going in the right direction.

    • Dont get ahead of yourselves all. The numbers can be a little misleading.

      This jump is short-covering based, not based on the fundamentals of the release.

      Sales are basically flat over last year. The EPS gain (which is nice) is mostly driven by the debt reduction since last year.

      I am disappointed that they only paid down about another $1million or so of the longterm debt (from about $43m to $42m). I was hoping that would be closer closer to $3m or $40m total debt.

      6c is what I said it would come in at about a week ago. This roughly implies a P/E 16.

      I bet the stock will continue spike in the morning with more short-covering (gotta love those idiots).

      But dont look for stratosphere jump to $5 or anything like that. But then also expect a slight selloff as those who bought in between $4.50-$5 to cover their losses and leave.

      Wont spike sustainably past $5 until probably after the next quarter release.

      $6-7 by end of calendar year is my forecast.

    • This report looks great. Just hope we don't get crushed under poorer than expected jobs numbers.

 
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