I see that the bashers have moved onto their next IPO target of opportunity, Krispy Kreme. Fifteen years ago I had my 1st KK donut in what looked to be a small time, unknown and locally owned business in Pensacola FL. It was no big deal. It was good, not the best donut I've had, but good. I moved to Jax, Fl. a few years later where I saw KK's popping up like daisy's and Home Depot's while some Dunkin Donuts folded or image changed (maybe in an effort to remain competitive w/ KK? Who knows). I just returned from Las Vegas, yesterday, where I saw a KK, donut machine viewing and all, in the shopping area of the Excalibur Hotel and Casino which, by the way, always had a crowd infront of the window and at the cash register. I told my wife that we had to check if KK was traded publicly. Low and behold I find out yesterday that KK IPO'ed just a week and 1/2 prior. I also read the news article and advisory announcing the Long Beach location Grand Opening. Now tell me again that this company is going nowhere. KK is tracking down the same road of popularity and growth that DD did 10 years ago with "gotta make the donuts". I am long and staying that way for quite awhile. From what I've seen and tasted over the last 15 years, this company has what it takes to be a successful national chain. That's something I'm going to bank on.
They make & package their own "mix", in their "own plants", ==> future franchises will be buying KK products.
They engineer & mfg their own doughnut making equip. ===> future franchises will be buying KK machines & parts.
They distribute their "finished products", i.e. donuts to "satellites"----> gas stations, convient stores,supermarkets, charitiable funraisers, (Note 10% of KK's FY2000 revenues came from from Kroger Grocery Stores - page 33 of the KK prospectus )
There is years of growth and expansion as they hit the "west coast", whjere there is just a handful of locations.
every time I go by on the way back from Angels baseball games at 10 to 11 at night and there are at least 30 vehicles in line. This every weeknight. On weekends you can't even get near the place. Long Beach which just opened is similar. I haven't bought the stock yet but it sure looks like buying Mc Donalds 20 years ago!
is this a good short? I noticed that it is off it high in the mid 40s, but seems to have based. I can't understand why it will be a good long term buy at this price after reading the SEC info--but should I wait until it hits 45 again or will it.