Krispy Kreme Doughnuts, Inc. Message Board
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Winston-Salem Business Journal Article Today on Krispy Kreme Takeover Potential
Article has many interesting details beyond the Bloomberg article.
Among the details is the fact that a 3 year old poison pill expires this week.
Also, many analysts commentary that KKD would require a healthy premium due to the fact that they have such a well run organization now that SHOULD easily grow to be worth $20 in a relatively short period of time if they stay independent.-
While a buyout would be a nice s/t pop, I'd rather own it for the l/t turnaround story. This could go back to $25-30 if mgmt continues to execute....
Sentiment: Strong Buy
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The interview with the CEO in the article back in July stated their intention for "some multiple" of number of current store locations by the end of the decade.
Would have to guess that he was basically stating that KKD intended to double or triple in size over the next 6 or so years.
With the Iconic BRAND they have...would think a buyer might be interested in harvesting that future growth NOW in making an acquisition. -
Doubt shareholders would allow a deal for below $15 at this point. As was detailed in the article KKD has such high potential for growth and strong financial footing at this point - Management may not be able to accept anything below that level.
- 1 Reply to fisk007
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I like kkd, but it wouldn't be advisable to buy any stock on take-over speculation. This co. Looks like it has no probs standing alone.
RegardsSentiment: Buy
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Title: Analysts says Krispy Kreme has been so successful in comeback, it could be ripe for takeover
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