this company is rebounding in terms of its balance sheet. however, it is still years away from any sort of performance that would inherently justify a $10 stock price. It'll get there -- just not fast (unless aquired with a HUGE premium).
Even if priced at 1.5 times sales, they'll have to grow their sales quite a bit (ie: intelligently open 50-100 or more stores).
Dont buy or hold KKD if you're looking to make a bundle overnight. Buy or hold because it's a good LONG TERM company.