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Krispy Kreme Doughnuts, Inc. Message Board

  • wheeegulp wheeegulp May 9, 2001 9:20 AM Flag

    Panic Buying Will Turn To Panic Selling

    All the shorts that haven't covered now -- won't. They know this cult stock can't hold this "bubble" valution forever.

    A lot of nimble traders have gone long and made money as shorts covered -- they will want to take profits before they have compeition from insiders next week.

    All the good news is priced into this stock. People will "sell the news" when earnings are announced. If same store sales show a decline -- it will give analysts who are uncomfortable with the valuation of KREM a very nice reason to downgrade and back-off of their recommendation.

    All the insiders who were unlocked last month are beginning to sell so they don't have competition with thier fellow insiders next week.

    All the buying pressue from people trying to follow the trend up will quickly dry up once the trend is reversed.

    The risk-reward for longs at this point is terrible. The only risk for shorts is that people cover to soon on the decline.

    But the fundamentals are on the short's side -- look at the last cult restaurant stock: Boston Chicken (who's clucking now).


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    • Hopefully they will talk him out of going early but if recent history proves correct he will fly away from Chapel Hill as did Jamison, Carter, Stackhouse, etc. Should be a law against it. Ive followed the basketball team since the early sixties and to only have 2 ncaa titles with all the talent that has went through that program during that time has been quite un-nerving to say the least.

    • I read on last week that he was expected to meet with Dean Smith, Bill Guthridge, and Coach Doherty sometime over the next week to discuss his future. They were speculating that he would be going to the pros. You're correct. That would be a huge blow to Carolina next year.

    • Been on the net tonight and have heard nothing on Forte. God forbid we lose him, hes all we have next year

    • You don't seem to understand something. I have absolutely nothing against this company. It's a great company with strong management, and when the stock price drops back down to a proper valuation, I'll go long in KREM. However, it's dramatically overvalued at its current price.

      Since you're a Tarheel fan too, have you been hearing the rumors that Joseph Forte is expected to announce that he's going to leave UNC to enter the NBA draft this year?

    • Why buy KREM when it is very OVER valued, when you can buy MAIN which is very undervalued, and the stock price is gaining momentum??

      Anyone buy stocks whose chart patterns are ready to break out of a long term base???

      MAIN has traded between $2 and $4.25 for the last 5 1/2 years. Today it closed at $4.15. Look at MAIN's chart. If it gets to $4.50, then the sky is the limit.

      MAIN owns TGI Friday's restaurants and recently acquired an Asain restaurant with much higher profit margins.

    • Sorry for not reading your post as you would have liked me to have. Hey, your a short and im a long on this stock. At least we have one thing in common, im a huge Tarheel fan also!

    • Had you bothered to read the thread, you would already know that I was telling the shorts and put holders on this board that no class action litigation on the part of investors against Krispy Kreme would be successful. Try reading the thread next time rather than assuming you know what my stance is.

    • Lawsuits, what a joke. The so-called uninformed investor has made out quite well the last year or so. The stock is overdue for a slight correction but thats normal with the recent run-up. Litigation now or in the near future is just pure folly!

    • You might want to notice that I was responding to a post, not making an original post. The subject of the thread I was responding to had changed from "panic buying" to class action lawsuits against companies. However, there has been massive covering on the part of weak shorts over the last several days combined with irrational, uninformed, naive investors buying this stock at extremely high valuations without any clue of what they are getting into.

    • What panic buying? Smart buying would be the accurate term. You must be a short!

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