Without sounding like I am crediting Cramer with ANYTHING...
The SIMPLE point he made was that KKD is STILL trading at a discount to it's growth rate.
Simply put - talk of fair value doesn't seem to begin until it trades at 25 times it's estimated upcoming annual earnings estimate of $.56 per share which is $14 per share.
AND...the point he made was...THAT $14 merely reflects fair value based upon projected growth rate. NEW GROWTH COMPANIES at this stage GENERALLLY trade at a PREMIUM to the growth rate.
Thus a 28 PE or a 30 PE is completely possible if not probable.
Is $.56 per share REALLY accurate? That represents approximately $40 Million +/- in operating earnings.
They just reported $9.2 Million in the November Earnings Report.
Wouldn't doubt the TRUE earnings picture is closer to $44 to $46 Million in 2013.
Closer to $.64 to $.66 per share.
Applying a 25 P/E to that number is a $16.25 Target
Applying a higher (and possible) 30 PE to that estimate is a $19.50 Target.
These numbers are one more reason that IF...IF there is any truth to a possible near term acquisition HIGH TEENS seem to be a good place to start.
AND - it is reason why mid to high teens ARE NOT out of the question in the DAYS and WEEKS ahead while the low $20's are NOT out of the question in the Months ahead.