It WAS a VALUE play 4 years ago. It is NOW a NEW GROWTH Play.
This quote somes it up and is SPOT on!
"Except now it's a growth stock. The value phase took some 3 years to play out. The growth phase will similarly take about 3-4 years to play out, so I think this is still a good solid play -- but for a slightly different reason now. Calling it a momentum play, to me, suggests a run that is not driven by improving fundamentals (sales, profitability)... PE expansion, etc. I dont think that is the case here at all."
Wall Street likes a good deal (Value Play at $3)...
But it REALLY LOVES a GROWTH PLAY!
And KKD is now - a NEW Growth Play! And when comparing to peers it is STILL a VALUE play.
Just look at the Tim Hortons Comps, The Starbucks Comps, The Dunkin Donuts Comps, The Peets Takeover, The Teavana Takeover.
KKD is still undervalued to the tune of 35% to 60% when compared to the others.
Agree with you guys. My point is the stock may be ahead of itself in the short term. They will have tough comparison with 75th anniversary sales. Who knows but I will always remain true to my value investor principles. On the lookout for the next great value. Good luck guys...I will keep some to keep an eye on it.
Good luck to you as well. As you suggest, there is no one single strategy for individual strategy. Its why diversification is often urged. That said, some folks are strictly Value Players. Others strictly Growth. Others Income. So on. SDenver, sounds like you are strictly a Value Player. Thats fine. Me, I like "smart" diversification. I held it before as my key Value play, now it's one of my key Growth holdings.