The thing with KKD is that it is the epitome of NON FLASHY.
People tend to gravitate to the next potential big bammazoo technology company...or new storage technology...or new device manufacturer...or ANYHTING that grabs their imagination.
KKD on the other hand it flat out simple to observe and understand.
People think that because it has moved 30% in a month that the move is over. BUT - if it were a new wiz bang tech company with all sorts of "POTENTIAL MARKET PENETRATION" numbers flying around they would buy without asking a second question.
Well...if you think about KKD and their market potential you realize it is beyond ENORMOUS.
BUT...KKD is a simple - non-tech business so it doesn't get the "sexiness" respect of tech companies.
People have missed the boat and will CONTINUE to miss the boat - and the above is one of the reasons.
Ask yourself this question...
What if you knew of a sexy tech company that was possibly going to grow revenues 100% +/- in less than 4 years.
Would you buy it?
And then ask yourself if you KNEW that the technology (in this case DONUTS) was good and was not going to be REPLACED by a NEWER technology...
Just look at Chipotle and Starbucks as companies that grew their brand ENORMOUSLY...(ANd there are many many others)
Actually you can take your basic theory and just drive by any KKD and observe the number of people waiting in a drive thru and sitting in the booths. Reminds me of lines at McD. There is plenty of dough being made.