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Krispy Kreme Doughnuts, Inc. Message Board

  • bsmitham bsmitham Apr 9, 2000 3:21 AM Flag

    Wife bought and so did I

    We've never had a Krispy Kreme, but the write-ups
    look like it's a winner so we bought some shares. I
    wrote to Yahoo to establish this message board for
    KREM. Glad they did it. The concept and plans sound
    fine. I downloaded the prospectus and discovered some
    things. There are 100 million common shares authorized
    and about 10 million preferred. The management got
    slews of stock options so they're sitting on the
    pretty. I was surprised to find that the company only
    earns 2.7% on each dollar of revenue. Their franchisees
    pay royalties of 3 cents on revenues from donuts sold
    in-house and 1 cent on outside sales to other
    vendors.
    The IPO issued 3 million shares and allowed another
    450,000 to the underwriters for oversubscription, but it
    looks like there are a total of 12.5 million shares so
    the "float" might be around 4 million with insiders
    holding the 8 million remainder for a whopping capital
    gains down the road if not now.
    With 100 million
    shares authorized, it looks like KREM will have a few
    splits in it's future. KREM looks like it could become
    the McDonalds of donuts. I'm holding long for the
    great appreciation potential here IF MANAGEMENT doesn't
    get too greedy. They've got a great compensation
    package. Hopefully, we'll all benefit.

 
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16.68+0.15(+0.91%)Aug 19 4:07 PMEDT