Waited in line to buy the doughnuts, waited in line to buy the stock. In both cases the outcome is sweet. I see all you shorties driving by the KREM expecting the line to dwindle down to nothing, it ain't happening. Drag your bear ass in and watch the machine crank them cakes, it never stops. Demand is high and supply is low. The top brass will not be dumping their shares, did Bill Gates ever sell his piece of the pie. No way, this stock offering was for the sole purpose of clearing a small debt off the books and to build a cash reserve, nothing more. A business free and clear with plenty of room to grow. Glad it finally went public. Now how many dozen would you like, for here or to go.
Uh, even if the lines continued to stay long (they sure aren't in my neck of the woods), at what point will KREM start actually making money? Their units are among the lowest performing stores in the industry based on return on assets or operating margin. And as far as Bill Gates, you might want to check insider sales for MSFT, he has sold approximately $20 billion in shares over the past two years. As for the purpose of the stock offering, a chunk went to pay down the not-so-small debt load that had been built up, and another sizable chunk went into insider's pockets. Yes, some was left over for future capital improvements, but that amounts to maybe 15% of what was raised. Based on the debt they generated over the past five years, that will last this company 18 months tops before they either dip back into the equity markets (future dilution) or load up the debt again (there goes profits and here comes default risk).
Enjoy the ride while you can, KREM will be under $20 by Oct. 15 2000