Question now is will KKD bankrupt before the March 25, 2005? That possibility is NO. Panagos is just trying to bluff and pressure the creditors and banks into getting a new loan and restructure the current debt with a more favorable term. Banks and creditors will eventually work things out and let KKD attempt a recovery effort. Banks are not interested in taking over and running a doughnut shop. They are interested in making loans and getting interest on that loan. A bankrupt KKD will make recovering the original loan difficult, complex, and time consuming in bankruptcy court. They will reconstruct terms and to recover their loan. This is the method that makes the most sense to them. They won��t forced KKD into bankruptcy, evident from they already willing to push back the default date twice to give room for KKD.
<The board's bigger morons have more than once tried to draw a parallel between K-Mart and Krispy Kreme. That's a load of crap.>
Does refuting the arguments of the board's bigger morons make you right on this stock? That seems like a pretty low bar to clear.
"The board's bigger morons" are only interested in pointing out that KM, now KMRT are 2 separate entities. KM, went bankrupt and shareholder's got nothing. KMRT is the new company that was recapitalized and is now arguably, quite healthy. KKD has had 2 bad quarters and several more to come. Do you have any idea what the cost of closing stores is? Are you aware that the company store segment is now losing money? Are you aware that while the franchising segment is quite profitable that 16.7 mil. of franchisee debt guaranteed by KKD is in violation of debt covenants? This would be a very negative indicator of franchisee solvency. Are you aware that KKM&D is going to be much less profitable due to the fact it will no longer have sales of equipment due to expansion being halted? Are you aware of the various lawsuits and the potential damage to the bottom line they might do? Your last post makes one think that you're of the opinion that allKKD has to do is trot out a new killer doughnut and it will return to days of yore.
No, you missed the point. The board's bigger morons have more than once tried to draw a parallel between K-Mart and Krispy Kreme. That's a load of crap. K-Mart had real estate assets that were somehow undervalued during their bankruptcy proceedings. How Lampert pulled that off is a mystery to me but that's a whole other story. What happened to K-Mart is they filed bankruptcy and managed to screw the former shareholders by retaining assets that had much more value than the BK court realized. They recapitalized the company by issuing new stock to creditors who came away smelling like a rose when Lampert sold off some of the real estate for a huge difference from what it was valued at during the BK proceedings. Anyone who tries to parallel K-Mart to KKD doesn't have a clue what they are talking about. The point is that Lampert/Vornado (or whoever) had an incentive for K-Mart to file BK because they were sitting on Real Estate assets. KK does not have a material amount of real estate and it would be stupid for any creditor to force them into bankruptcy (even if the company has violated a loan covenant) because doing so would almost guarantee that they will get less than if they give KK more time to turn around their operations. They've only had one or two quarters of losses for GOD's Sake! It isn't like they've been losing money for years and years. So they will report 8c less in 2004 than previously stated. BFD! The restatements and BK talk are WAY OVERBLOWN!
There is a huge difference between Insider SHORTING and Individual investor SHORTING.. Insider shorting is done to eliminate market capitalization from individual investors--This is done by holding investors hopes high until most, if not all, market cap has been eroded by insider short selling and market manipulation has brought a stocks value near zero. It is this time when Insiders find "skeletons" in the closet and do everything possible to discourage an ivestor to hold the shares (some inside shorts cases take the stock BK due to a lack of shares to to cover with averting any short squeeze-ie. They steal the capital and are willing to take the company they run BK just to maximize the profits from their short position-This is commonly done by the most corrupt and unethical snakes.. I'm seeing this scenario playing out with KKD !! They were willing to cook the books positively, so one can only deduct that they are going to do so on the negative when their hedged short !!
I am a graduate accounting student at UF. Take my words from someone who knows how to read financial statements. This company is following enron and worldcom. The auditors wouldnt even sign off on the financial statements! What does that tell you. The company hasnt released f/s in over 9 months. When they release their updated statements, if I should say, the stock will plummet because the real numbers will come out about what they have been hiding
You are a graduate student? Keep learning young fella. I graduated with a Masters Degree in Business with a concentration in Finance about 10 years ago. I have more knowledge under my belt about Finance, accounting, and the stock market than you and I say that you are full of