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KKD (nyse) - a bigger winner in the making?
I just found this posting and I am wondering if anyone have further comments. It looks good from my perspective and I am thinking of grabbing a few shares for a ride.
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KKD (Krispy Kreme Doughnuts, which trades on the NYSE). Yes, it's that long ago "hi-flyer" of the stock which ran up to over $40 and came crashing back down to under $5. But things have changed, and in a very positive way!
First of all, KKD has finally got all of their financials back in order with the filings that were made last week. Another thing is that they are about to refinance all of their debt at much lower interest, and per the WSJ article of February 2 on page C9, it looks like "deal comprises a $50 mln revolving credit line and a $110 mln "term loan" that has already been five times oversubscribed, according to Standard & Poor's Leveraged Commentary and Data". Last, but not least, Jim Cramer has been bullish on the stock since it was $9.50 and he fully agrees with the Prudential analysts who has recently raised the target on KKD from $15 to $17. Now, you may like or hate Cramer, but he does move stocks and on his website (Realmoney.com) he was still making commentary that he sees KKD going "much higher".
The other significant piece of information is the short interest. Although KKD has climbed from $7.50 to near $13 now during the last few months, the short interest has still remained at 32% with an avg of 22 days to cover. It has also been on the "Naked Short List" for over 145 days straight. Meanwhile, major investors are increasing their positions on KKD and insiders are not selling.
http://www.buyins.net/tools/short_list.php?ssd=20070205 look at #10 on the list
Anyhow, what I like most about KKD is the chart. Simply a beautiful uptrend chart which has rewarded those who have been buying on the "dips" during the last 4 months:
The MACD, RSI and Stochastics are all in a nice uptrend and the stock has been supported by the 20-day moving avg since mid-December. It had a nice selloff from an overbought situation at the start of last week but now has restarted the climb upwards.
Although the P&F chart (link below) sees KKD going to $26 eventually, I think that it has a very decent chance to see $16-$17 in not too distant future.
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Comments, thoughts?
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KKD (Krispy Kreme Doughnuts, which trades on the NYSE). Yes, it's that long ago "hi-flyer" of the stock which ran up to over $40 and came crashing back down to under $5. But things have changed, and in a very positive way!
First of all, KKD has finally got all of their financials back in order with the filings that were made last week. Another thing is that they are about to refinance all of their debt at much lower interest, and per the WSJ article of February 2 on page C9, it looks like "deal comprises a $50 mln revolving credit line and a $110 mln "term loan" that has already been five times oversubscribed, according to Standard & Poor's Leveraged Commentary and Data". Last, but not least, Jim Cramer has been bullish on the stock since it was $9.50 and he fully agrees with the Prudential analysts who has recently raised the target on KKD from $15 to $17. Now, you may like or hate Cramer, but he does move stocks and on his website (Realmoney.com) he was still making commentary that he sees KKD going "much higher".
The other significant piece of information is the short interest. Although KKD has climbed from $7.50 to near $13 now during the last few months, the short interest has still remained at 32% with an avg of 22 days to cover. It has also been on the "Naked Short List" for over 145 days straight. Meanwhile, major investors are increasing their positions on KKD and insiders are not selling.
http://www.buyins.net/tools/short_list.php?ssd=20070205 look at #10 on the list
Anyhow, what I like most about KKD is the chart. Simply a beautiful uptrend chart which has rewarded those who have been buying on the "dips" during the last 4 months:
The MACD, RSI and Stochastics are all in a nice uptrend and the stock has been supported by the 20-day moving avg since mid-December. It had a nice selloff from an overbought situation at the start of last week but now has restarted the climb upwards.
Although the P&F chart (link below) sees KKD going to $26 eventually, I think that it has a very decent chance to see $16-$17 in not too distant future.
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Comments, thoughts?