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Krispy Kreme Doughnuts, Inc. Message Board

  • jp_92835 jp_92835 May 11, 2000 3:56 PM Flag

    Get in line

    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
    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.

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    • no doubt about it. KREM will change the world

    • 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

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