Because Coffee & Doughnuts are eaten together ?
Don't make the mistake of comparing SBUX
to KREM. SBUX has 7 years
as a public company
and has a proven growth rate in earnings.
KREM has been around for DECADES
and they still
only have ~150 "stores" or donut stands.
on the IPO bandwagon only to enrich corporate
SBUX sells a medically-proven additive substance ...
KREM sell fattening treats. How often do you
buy or eat donuts ?
And would you drive miles
to KK to get them ? KREM is just a passing
When will snacking in a Krispy Kreme ever be trendy
fashionable ??? NEVER !!!
You really believe all that sh*t that's coming
out of your mouth, don't you? Simply amazing. It's
true, a sucker is born every second. The only thing I'd
change would be that they would be required to have
"SUCKER" tatooed on their forehead.
Ha ha ha,
PCOR looks okay but I wouldnt put a ton of money
into it.. My pick for today are to short TFS anything
above 30.. It should go down to the mid to upper 20's.
Also look at AQLA I expect it to close a bit below 5
today. AND of course short the hell out of KREM.. I like
LCOS to go higher as well as T,WCOM,ATHM and I am also
thinking about shorting SONS,PFCB and TSTN...GOOD LUCK...
KREM is up on very light volume. This runup wont
last. For you longs this is a your last chance to get
out above 60. And if you are short it might be a good
time to add a little to you position. I shorted
another 1100 shares.
Do the terms "been around for decades" and "just
a passing fancy", belong in the same
Of course KK is overvalued, but you haven't ben on
this board from the begining where there were constant
arguements about what exactly KK is. The difference from a
MCD, is the production facility in each store. From
reading the info on their website and news articles, a
store manufactures 2,000 or so per hour. This obviously
is not in store sales, but feeds KK's network of
5,000+ distribution partners (supermarkets, gas
stations, etc.). I think that is why people keep comparing
them to SBUX, because of the distribution
I drive about an hour and a half round trip at
least on Sunday a month to pick up about 3 dozen from
the closest KK. I know a lot of other people who do
it as well, at least in my area. But then again KK
has been here as long as I can remember (30 years). I
notice a lot of shorters, especially from CA, saying it
is a fad. Reasonable investors from the East know
that the only fad is a ridiculously high price.
Did I actually hear you mention a ridiculously
Fad or no, the experiences of KK
customers in their core markets do not necessarily
translate to the experiences of customers in new markets.
KK is a piece of Americana in the South, but it is
hard to be all things to all people. At this point any
success KK has in California is a fad, or a trend. And
certainly in my neck of the woods they have fallen flat on
We have a similar concept out here
called In-N-Out Burger. I know people who will drive an
hour out of their way for one (myself included). They
enjoy true cult status in California. And they too have
been around for 50 years, and are about the same size
as KK. Because of some tragedies involving founding
members, there is no one left (family) to run the
business, and the word is they may go public. Does that
mean all they need is a big wad of IPO cash and they
can roll them out nationally and knock MCD off the
planet? No. Every business has risks, and most that have
been public for years have that risk priced in. New
IPO's bring people out of the woodwork who end up
getting hurt. This stock will be no exception, whether
the company is successful or not, since even at $62
it is priced for perfection.
A bunch of grumpy old men hop in their winnebago
every Sunday to share their teen conquests, BenGay, and
flatulence during a 1 1/2 hour donut escapade.
if that isn't a reason to buy a 100+ P/E donut
company, I don't know what is?
Not everyone in CA is short on KREM. Oldest store
in CA still doing fine. Newest store in Long Beach
is next door to police station (brilliant!). It was
the Analyst who first compared KK to SBUX calling it
a "Concept Restaurant" stock.