The stock is undervalued and it is a strong Buy. Today in Light Round Cramer stated that he does not like the stock, and wants management of KKD to explain earnings or something like that. In my humble opinion, Cramer has no reason to dislike the stock so he tried to support his disliking by blaming management for a lack of explanation. You know Cramer can explain any stock regardless of what management thinks.
KKD worried me last week but I did not lose faith in its ability to recover after shares plummeted 35 % over two weeks. Today, the stock recovered some and this is a good sign. Now I am debating whether I should add more to my current portfolio. I think at the current price the stock is a steal. As an investor, I am long on the stock, but as a customer I am loyal forever! Next earnings will compensate for all that has been lost. Please give me some feed back.
FYI: Q4 Earnings will be released on Feb 22, 2013 according to Fedility Investment snap shot of SGOC. The date is listed,however as unconfirmed.
Honestly, I traded the stock one time only. I exited at the right time, and made a decent profit. The problem with trading this stock is the low daily volume. The volume goes up drastically when there is an event, then goes back to its low volume. I feel that trading should be done within the time frame created by the event. If you stay in beyond that you lose the short lived gain that you have had the chance to run away with.
This is a difficult stock to trade. On 11/20 the stock jumped to 8 dollars because an article published two days before predicted that SGOC shares will sky rocket after the earnings report. The article was also spiced up by comparing SGOC to the Inter Cloud Systems (ICLD) stock which went from $2.55 to $14.58 within three days from the date the quarterly earnings were released. The story made investors rush to buy the stock in a hurry. The trading volume went up twenty folds overnight. Of course, most of the appreciation evaporated next day because of profit taking. For next quarter, any appreciation in value will be based on the results of the next earnings report. If the stock goes up, I expect profit taking will bring the stock down to where it was before. Most investors are in to trade the stock, and not to invest in it for the long term. You must trade this stock like a day trader to make money.
KKD is testing investors' nerves to the max. I will try to remember what Warren Buffet said to some extent: When everyone is greedy I am most afraid, and when everyone is afraid I am most courageous. I think it is time to recognize this great saying. I know that fear is behind the over selling of KKD. The results of the earnings report is not the cause that ignited the over selling of the stock. Fear that emanated from the financial analysts reports is what made investors panic and bail out in a hurry. Remember; once any stock faces even a small weakness, many financial analysts become surgeons who want to operate on it without anastasia
KKD was expected to perform better based on its valuation before earnings. Although the earnings report was not bad, it did not meet the high expectations. This is what we get when we buy a stock that was overvalued to start with, and then the company fails to deliver. The stock goes south and we start lamenting our loss. Was the stock worth $25 before earnings? Apparently it was not. Now we either ride the storm or exit. I think the stock will soon bottom out and starts the recovery at a very slow pace. I am going to hold on.
KKD will open its first Donut shop in Taiwan this Thursday, and the company is planning to open 10 more. KKD will contimue to expand here and abroad. Forget about the recent erratic reaction to the earnings report. This company will continue to grow, and one should think of buying the stock now as investment rather than a quick trade.
Since SGOC is traded on NASDAQ it will be affected by a market correction to the US stock market. However, the impact of the correction will be less adverse since the SGOC's fundamentals are more affected by the economic situation in china. The company has performed well in China, and would be in a better position to sustain pressure than other companies if a market correction were to happen. This is my opinion.
From what I read in the Weekend I came to believe that the reaction to the earnings report was extreme. Some investors also bailed out with their profit because the news after earnings release was fought with negativity. The company is expanding locally and internationally. It won’t be long before KKD regains what was lost. Hang on there. I have a position in KKD, and I intend to hold on my shares and enjoy the Krispy Kreme Doughnuts
Sentiment: Strong Buy
This company is targeting a segment of the market that can afford a product with fewer features than top of the line. There is nothing wrong with this marketing strategy. Europeans and American car makers export cars with fewer options to third world countries to make their cars affordable to the consumer in these countries. SGOC is a smart company that wants to capitalize on a segment of the market that wants their product because they can afford it. Not every one on this earth can afford the best TV or i phone. SGOC is a company with a marketing vision.
Those who traded the stock made a lot of money. All who bought at 4;00 to 4.50 and sold above 7 made a lot of money. Those who wanted to invest in the stock lost money. You got to wait for a positive event to capitalize on. If you get greedy you will be burn. In and out is the strategy. Profit taking burned so many traders last time the stock reached 8.
How ironic that the internet allowed you to expose your incivility to so many people in an instant. Please stop vomiting your ignorance on us through this board. I am aware that others have responded to you in a similar fashion, more or less. We all should refrain from using words that we would not want our families to read. Above all , our freedom of expression does not mean that we should use profanity at will. We must respect each other whether we are commuicating in person or electronically.
One reason is that most people buy stocks based on a story (news). The earnings report was not bad at all. However, when the CEO stated that the outlook for 2015 will be soft, more or less, a negative sentiment hit the stock after market and continued on. For KKD the P/E is high and any miss on revenue no matter how small will be costly because investors have already projected the stock to perform better than that. The downside today will be short lived. It is an opportunity to buy while the stock is down.
It is not a dumb decision if silmariloin123 is expecting the price to go up substantially. When I buy a share at $3.80 I am not looking to sell it at $4.00. If I do not think this share is going to climb to $7.00 or above I won’t buy it at either price. The aim should not be to buy at the bottom if you do not think the share will go up to a price that will make you a good return on your trade. I think this is a good stock to buy at 3.80 to 4.20 provided that you can wait for a while before you see real appreciation in value
This company will deliver next quarter way above expectations. Float is low, but the company is being more recognized by the day. This stock is an excellent investment opportunity, but may not be suitable for quick trading (fast money).
I urge you to read what Seeking Alpha wrote about ICLD. It scared me even though I have no position in the stock. I am very conservative when it comes to business decision making, and I would not use my own intuition to judge this business. Please read and tell us what you think.