BloggingStocks

Equity firm dunking fund into Krispy Kreme

Tom Barlow — 2008-07-01T11:01:00+00:00

Filed under: Deals, Private equity, Krispy Kreme Doughnuts (KKD)

A private equity group unfamiliar to the stock market world claims to have made a bid to acquire struggling donut maker Krispy Kreme (NYSE:KKD). According to The Winston-Salem Journal, MGL Asset Management Group has offered $7.25 a share for the company, a premium of almost $2 a share over its closing price Monday.

The mystery surrounding MGL, its assets, ownership and ambitions have caused some to meet the proposal with skepticism. The company provides almost no information on its web site, and its spokesperson told the Journal that the bid was legit, but declined to elaborate.

The skepticism about this offer seems to stem from the wisdom and timing of such an acquisition. Although KKD just reported its first profitable quarter in over three years, overall, since selling in the $50 range before the carb craze, it has waffled ever since below the $10 mark, bottoming out at $2.50 a share just last November.

At a shareholder meeting recently, the CEO of Krispy Kreme reiterated the company's plans to build international business and increase the range of snack foods sold in convenience stores. Neither option, in my opinion, is likely to have a strong impact on the company's bottom line in the near future, if at all. One profitable quarter after three and a half years of losses in a company with a tired brand doesn't whet my appetite.

I wonder what drives MGL's interest? Perhaps they're looking at the hole picture, with a glazed look in their eyes.

View Poll

Permalink | Email this | Linking Blogs | Comments

Earnings highlights: Lehman, UBS, Krispy Kreme, Pepsico, Pep Boys and others

Trey Thoelcke — 2008-06-14T09:10:00+00:00

Filed under: Earnings reports, Microsoft (MSFT), PepsiCo (PEP), Krispy Kreme Doughnuts (KKD), Alcoa Inc (AA), Best Buy (BBY), Nortel Networks (NT), QUALCOMM Inc (QCOM), Texas Instruments (TXN), CMGI Inc (CMGI), Lehman Br Holdings (LEH)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

ADC Telecommunications Inc. (NASDAQ: ADCT) beat Q2 estimates and raised its full-year guidance.
Alcoa Inc. (NYSE: AA) near-term earnings prospects led to an analyst downgrade.
Banco de Chile (NYSE: BCH) earnings prospects after an acquisition led to an analyst's upgrade.
Benihana Inc. (NASDAQ: BNHN) posted lower Q4 profits but still beat earnings estimates.
Bob Evans Farms Inc. (NASDAQ: BOBE) reported solid Q4 results due in part to cost management.
Brown-Forman Corp. (NYSE: BF.B) easily beat Q4 estimates and offered full-year guidance.
CMGI Inc. (NASDAQ: CMGI) lowered its guidance, sending shares tumbling 25%.
Coca Cola Hellenic Bottling Co. (NYSE: CCH) warned of weaker earnings due to economic conditions.
Conn's Inc. (NASDAQ: CONN) reported solid Q1 results and issued in-line guidance for the year.
Dick's Sporting Goods Inc. (NYSE: DKS) earnings prospects impress analysts despite recent guidance.
Guess? Inc. (NYSE: GES) topped Q1 expectations due to strong international expansion.
Krispy Kreme Doughnuts Inc. (NYSE: KKD) swung to a Q1 profit despite falling revenues.
Lehman Brothers Holdings Inc. (NYSE: LEH) posted a bigger-than-expected loss on further write-downs.

National Semiconductor Corp. (NYSE: NSM) beat estimates on cost efficiencies and improved product mix.
Nortel Networks Corp. (NYSE: NT) reaffirmed its revenue guidance for the full year.
Pall Corp. (NYSE: PLL) reported strong Q3 results that beat Wall Street expectations.
Pep Boys (NYSE: PBY) reported that Q1 earnings jumped due to real estate transactions.
PepsiCo Inc. (NYSE: PEP) plans to reiterate its full-year earnings guidance despite market conditions.
Qualcomm Inc. (NASDAQ: QCOM) earnings prospects for the second half of 2008 impress one adviser.
Quality Systems Inc. (NASDAQ: QSII) Q4 profits grew 32%, in line with analysts' expectations.
Shuffle Master Inc. (NASDAQ: SHFL) topped Q2 expectations, sending shares higher.
Smith & Wesson Holding Corp. (NASDAQ: SWHC) Q4 profits fell but still beat analysts' estimates.
Talbots Inc. (NYSE: TLB) reaffirmed its better-than-expected 2008 earnings guidance.
Texas Instruments Inc. (NYSE: TXN) warned that weak demand for chips could hurt Q2 results.
UBS (NYSE: UBS) warned "further write-downs may hit earnings" and some assets classes had deteriorated.

Also, Barron's likes the prospects for ethanol producers such as VeraSun Energy Corp. (NYSE: VSE). Kiplinger's includes Best Buy (NYSE: BBY) and Dick's Sporting Goods among its Father's Day stock picks. Could rancor over Vista hurt Microsoft's (NASDAQ: MSFT) bottom line?

Upcoming results to watch for include Adobe Systems (NASDAQ: ADBE), La-Z-Boy (NYSE: LZB), Best Buy (NYSE: BBY), CarMax (NYSE: KMX), Goldman Sachs (NYSE: GS), FedEx (NYSE: FDX), JM Smucker (NYSE: SJM), and Winnebago (NYSE: WGO).

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Krispy Kreme swings to Q1 profit; Pall Corp. tops Q3 estimates

Trey Thoelcke — 2008-06-09T19:23:00+00:00

Filed under: Earnings reports, Krispy Kreme Doughnuts (KKD)

Krispy Kreme Doughnuts Inc. (NYSE: KKD) which has struggled recently with allegations of mismanagement, healthier eating trends, bankruptcy filings by franchisees, and increased competition, said on Monday that it swung to a profit in the first quarter. Also on Monday, Pall Corp. (NYSE: PLL), which makes filters and purifiers, said fiscal third-quarter profit rose, boosted by favorable foreign currency translation and increased sales.

For the quarter that ended May 4, Krispy Kreme reported a profit of $4 million, or 6 cents per share, compared with a loss of $7.4 million, or 12 cents per share in the prior year quarter, when results were cut into by refinancing and litigation charges.

However, revenue fell 7% to $103.6 million from a year ago. The Winston-Salem-based doughnut retailer said same-store sales fell 3.9% overall, but rose 1.2% at company-owned stores.

Krispy Kreme shares rose 48 cents on Monday, or 14%, to $3.90, but slipped in after-hours trading. Shares have risen 23.4% year to date, but are still well off their 52-week high of $9.50.

East Hills, N.Y.-based Pall Corp. reported that its fiscal third-quarter net income rose 26% from the year-ago quarter to $63.3 million, or 51 cents per share. Excluding restructuring and other one-time charges, income earnings were 54 cents per share. Revenue rose 18% to $661.7 million.

Analysts polled by Thomson Financial, on average, had anticipated earnings of 50 cents per share on sales of $633.5 million.

Pall shares rose 42 cents, or about 1%, to close at $39.82, and then rose another 53 cents in after-hours trading. Shares are up 1.2% year to date.

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Closing Bell: Mixed day despite broad market gains

Jon Ogg — 2008-06-09T16:06:00+00:00

Filed under: Krispy Kreme Doughnuts (KKD), Lehman Br Holdings (LEH)

Today's pending home sales showed a 6.3% gain from March to April, although much of the gains are being attributed to bargain hunters. One other help may have come from Treasury Secretary Hank Paulson, who said he would never rule out any tools such as intervention. Even OPEC noted that they wanted to have a meeting to discuss the inequality of current oil prices versus the current supply-demand models and this took off more than $4.00 per barrel of oil. Below are today's unofficial closing prices:

DJIA 12,281.29 (+71.48)
S&P500 1,361.98 (+1.30)
NASDAQ 2,461.33 (-13.23)
10YR T-NOTE 3.992% (+0.054%)
Top 10 Analyst Calls

Krispy Kreme Doughnuts Inc. (NYSE: KKD) shares surged by 10.5% to $3.78 by the final minutes of trading after the company announced that it earned $0.06 EPS for the quarter.

Lehman Brothers Holdings Inc. (NYSE: LEH) was a huge mover today after the company raised some $6 Billion to bolster its books after reporting much wider than expected losses. Shares were down 11.5% at $28.55 in the final minutes today.

Pier 1 Imports Inc. (NYSE: PIR) saw a sharp drop of 22% to $5.19 by the final minutes today after making an offer to acquire a smaller rival, the parent of Cost Plus World Markets.

Permalink | Email this | Linking Blogs | Comments

Battle of the Brands: Dunkin' Donuts vs. Krispy Kreme

Sarah Gilbert — 2008-04-30T11:00:00+00:00

Filed under: Consumer experience, Competitive strategy, Marketing and advertising, Krispy Kreme Doughnuts (KKD), Battle of the Brands

This post is part of our Battle of the Brands feature. Let us know which brand you prefer, and check out other Battle of the Brands posts.

Oh, how the sugary have fallen. Ten years ago, even five, you and I both know how this would have come out. In the standoff between longtime national fried-dough pusher Dunkin' Donuts and upstart sweet freak Krispy Kreme Doughnuts (NYSE: KKD), Krispy reigned supreme. The chain was rolling out new franchises as fast as dough circles could parade around its restaurants on shiny metal racks, and each time it did local police stations did overtime directing traffic.

Somehow, the mighty fell after the considerable sugar high, largely connected to poorly-managed finances, badly-handled expansion, and a sudden national fear of carbohydrates. All the while, Dunkin' Donut managers everywhere continued to plod along, making the doughnuts, and quietly stirring a blue-collar breakfast revolution. One day America woke up and realized, hey, Dunkin' Donuts' coffee is good! Someone named it "Better than Starbucks" and it soon became clear that the product guys had realized something: we make a lotta money off of coffee. Actually, more than half of the company's revenue.

Soon Rachael Ray was perkily declaring her love for Dunkin' Donuts (pointedly never eating a doughnut in a commercial), Dunkin' Donuts coffee was available in grocery stores, and Krispy Kreme doughnuts were growing stale in their plastic cases. The company couldn't even find a way to make a trans-fat-free doughnut, let alone win back the enthusiasm America had once felt for the iconic glazed dough circles.

While today it's my belief that more Americans love Dunkin' Donuts than Krispy Kreme, it's interesting to note that it's not because of any superiority in the powdered chocolate creme-filled pastry (oh, how I loved you once upon a time!). No, it's all in the rest of Dunkin' Donuts' menu -- and perhaps its working-class, no-fuss cred -- and it's unlikely Krispy Kreme will ever be so hot and fresh again.

Vote in our poll for Krispy Kreme or Dunkin' Donuts as your preferred brand, and let us know in the comments why you love it.

Permalink | Email this | Linking Blogs | Comments

Companies at risk, are you bank deposits safe?, cash in on lower rates - Today in Money 3/24

Allan Halprin — 2008-03-24T08:46:00+00:00

Filed under: Wal-Mart (WMT), XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), McDonald's (MCD), Walgreen Co (WAG), Johnson and Johnson (JNJ), JPMorgan Chase (JPM), Krispy Kreme Doughnuts (KKD), Blockbuster Inc 'A' (BBI), Money and Finance Today, Boston Scientific (BSX), Tiffany and Co (TIF), Sears Holdings (SHLD), Comcast Cl'A' (CMCSA), Verizon Communications (VZ), Wendy's Intl (WEN), Washington Mutual (WM), Wells Fargo (WFC), Time Warner Cable (TWC), Bear Stearns Cos (BSC)

In the News:

· JP Morgan Could Raise Bear Stearns Bid

· Gas Prices Rise 7 More Cents to Hit All-Time Record

· Media Companies Battle Web Portals on Ads

· Tiffany Profits Hurt By Bad Loan, But Beats Estimates

· Walgreen Earnings Up 5%

· From Bad to Worse at Big Media

· XM, Sirius Deal May Finally Be Near

· Visa: Beware of Potholes

· Comcast, Time Warner Cable Cry Foul on Verizon

· KFC Fires Up Grilled Chicken

· Sales Tax Holidays Sought By Some States for Rebate Checks

Will McDonald's Buy Wendy's? Wal-Mart Nab Sears?

Some believe the current financial crisis is the most serious since the Great Depression and if so some of the largest companies in the country could be taken over and cease to be independent public corporations. Huge firms with vulnerable businesses, competitive pressures, and weak balance sheets may end up being takeover targets. Here is 24/7 Wall St.'s predictions of possible takeovers that could happen in the near future if the current crisis persists. They include McDonald's buying Wendys, VW acquiring Ford Motor, Wal-Mart getting Sears, Wells Fargo buying out Washington Mutual, J&J nabbing Boston Scientific and more.

24/7 Wall St.: Big Mergers For A Recession Economy, Do Firms Like Ford, Citigroup, and Sears Go Away?

Companies at Risk

Already this year, 24 public companies with assets worth $9.9 billion have filed for bankruptcy protection. Things will likely get much worse. If S&P is right, that could mean as many as 74 additional defaulting companies within the next 12 months. While nobody knows exactly which companies will default and which will turn themselves around, S&P's latest list of its "weakest links" shows companies that have the lowest credit ratings and face a strong possibility of additional downgrades. There are now 93 U.S. companies on the list, including some household names, such as Eddie Bauer, Sbarro, Guitar Center, Blockbuster, Six Flags, Krispy Kreme and Linens 'n Things.

Credit crunch puts some companies on S&P watch list - USATODAY.com

Your Bank Deposits Are Safe

Sheila Bair, the nation's top banking regulator, tells Fortune that a tiny number of banks may fail during this crisis, but ordinary bank customers have nothing to fear.

Sheila Bair, FDIC chairwoman, reassures bank customers - FORTUNE

Cash in on Lower Interest Rates

Borrowers with stellar credit will grab the best deals on mortgages, credit cards and car loans.

Cash in on Lower Interest Rates - Kiplinger.com

Why It's Not Too Late to Refinance?

Rates have crept up from recent lows, but even now, a refi can be a smart move.

Why it's not too late to refinance -MONEY

Permalink | Email this | Linking Blogs | Comments

Dollars for donuts: Krispy Kreme for sale?

Michael Rainey — 2008-01-08T13:43:00+00:00

Filed under: Rumors, Management, Krispy Kreme Doughnuts (KKD)

Dealbook is reporting (although speculating is probably a better word) that Krispy Kreme Doughnuts (NYSE: KKD) may be preparing to put itself up for sale. This shouldn't come as too much of a surprise given the problems Krispy Kreme has experienced over the last few years.

Just in 2007, Krispy Kreme fell from nearly $14 a share to under $3. Although this is bad enough, the long-term picture is even worse. In 2003, Krispy Kreme hit $50, so the five year performance is something like negative 90%. While health fads are in part to blame, with carbohydrates being vilified in many popular diets, most analysts suspect that Krispy Kreme's management is largely responsible for the poor performance.

Marketplace's Herb Greenberg, who has long thought that Krispy Kreme's old CEO needs to go, is the main source of speculation that Krispy Kreme may be looking for a buyer. He argues that the recent resignation of the old CEO, Daryl G. Brewster, suggests that the board is finally getting serious about turning things around. More importantly, the new CEO, James H. Morgan, has an investment banking background, and his involvement suggests that the company is looking for outside intervention.

Read | Permalink | Email this | Linking Blogs | Comments

Krispy Kreme Doughnuts bids adieu to its chief and to trans fat

Beth Gaston Moon — 2008-01-07T16:19:00+00:00

Filed under: Products and services, Management, Competitive strategy, Krispy Kreme Doughnuts (KKD)

Say what you want about the tasty warmth of its fresh-from-the-fryers glazed confections, Krispy Kreme Doughnuts (NYSE: KKD) hasn't been leading the sweet life of late. Beleaguered and beaten down in the midst of what CNN Money calls a "sputtering turnaround effort," the company remains challenged with an anemic share price, struggling sales, and folding franchise locations.

Today, Chief Executive Daryl Brewster, who took the reins in March 2006, announced plans to retire for personal reasons. Brewster will leave his post at the end of this month. The board quickly named James Morgan, board member since 2000 and chairman of the board since 2005, to take the vacated seat.

In other news, Krispy Kreme has followed the lead of many fast-food concerns to announce that all products sold in the U.S. are now free of trans fats. KKD officials said it has been introducing zero-grams trans fat products across the country during the past several months.

Investors are cheering this combination of news, as the stock has spiked 9.5% in today's trading. Of course, given the stock's current price (around the $3 level), this represents an absolute increase of 27 cents per share.

Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

Read | Permalink | Email this | Linking Blogs | Comments

Best values in public colleges, coming credit card crunch & will bargain gas hurt your car? - Today in Money 1/7

Allan Halprin — 2008-01-07T09:00:00+00:00

Filed under: Microsoft (MSFT), Yahoo! (YHOO), General Motors (GM), New York Times'A' (NYT), Sony Corp ADR (SNE), Krispy Kreme Doughnuts (KKD), Money and Finance Today, Clorox Co (CLX)

In the News:

· Where Are Markets Headed After Last Weeks Plunge?

· Bill Gates Bids CES Farewell a Few Months Before Leaving Daily Duties At Microsoft

· Pressure Mounting for Big Rate Cut By Fed

· GM Sees Driverless Cars Within the Next Decade

· McDonald's Coffee Bars Take on Starbucks

· Investors Said to Seek Takeover of CNet

· Yahoo Makes New Play for Ads on Mobile Phones

· New York Times & CNBC to Share Material on Their Web Sites

· Sony's PS3 Was Big Holiday Hit With 1.2M Units Sold

· Wikia Wants to Shake Up Search

· Can Burt's Bees Turn Clorox Green?

· Krispy Kreme's CEO Ousted

· 'Subprime' Named Word of the Year Over 'Facebook', 'green' and 'Googleganger'

CES Kicks Off, But Some Scale Back
The annual Consumer Electronics Show in Las Vegas has become a challenging place to introduce new products so some companies are scaling back.
As Electronics Show Grows, Some Scale Back - New York Times
Also: Sony Hopes Thin Will Be In

2008 Best Values in Public Colleges
Here is where to find a first-rate education without breaking the bank. For in-state residents the University of North Carolina tops the University of Florida. If you are out-of-state the top school you may never have heard of. It is SUNY Geneseo, a small liberal arts college in western New York.
Top 100 Public Colleges - Kiplinger.com Rankings: Top 100 Colleges

The Coming Credit Card Crunch
The subprime mortgage crisis has cost millions of homeowners their homes. Now it threatens to put the squeeze on even more consumers by spilling into the credit-card market. Here's what you should watch out for this year.
The Coming Credit-Card Crunch | SmartMoney.com

Will Bargain Gas Hurt Your Car?
At a time when motorists are trying to shave even a few dollars off their fuel bill, shopping some of the lesser-known brands may be a good idea. Here is what you need to know.
Will bargain gas harm your car?

7 Easy Steps to Save an Extra $1,000 in 2008
Small changes to your spending habits really add up over a year. These painless moves could net you a grand.
7 easy steps to saving $1,000 in 2008 -Bankrate.com

Welcome to Your Office (circa 2020)
What will a day in your office be like 10 to 15 years from now? Here's a sneak peek, based on reports from the staff of Kiplinger Business Resources.
The Office of the Future - Kiplinger.com

Permalink | Email this | Linking Blogs | Comments

Earnings highlights: Revised forecasts for Merck, Comcast, Target, ConAgra

Trey Thoelcke — 2007-12-09T09:40:00+00:00

Filed under: Earnings reports, Forecasts, Dell (DELL), Target Corp. (TGT), Krispy Kreme Doughnuts (KKD), Comcast Cl'A' (CMCSA), ConAgra Foods (CAG), Merck and Co (MRK), Toll Brothers (TOL), Palm Inc (PALM)

Here are a few highlights of this past week's earnings coverage from BloggingStocks:

Big Lots Inc. (NYSE: BIG) reported a record quarter due in part to improved distribution.
Blyth Inc. (NYSE: BTH) trounced EPS estimates and raised its guidance.
ConAgra Foods Inc. (NYSE: CAG) raised its earnings forecast for Q2 on strength in merchandising.
Donaldson Co. (NYSE: DCI) beat estimates due to strength in international markets.
J. Crew Group (NYSE: JCG) posted a solid quarter due to strength in both store and direct sales.
Krispy Kreme Doughnuts Inc. (NYSE: KKD) narrowed its loss, but foresees further store closures.
Liquidity Services Inc. (NASDAQ: LQDT) posted a strong quarter, benefiting from the sluggish economy.
Merck & Co. Inc.'s (NYSE: MRK) earnings forecasts for 2007 and 2008 fall short of expectations.
Netezza Corp. (NYSE: NZ) beat expectations of both earnings and revenue.
Palm Inc. (NASDAQ: PALM) forecast a loss for the current quarter due to product delays.
Royal Bank of Scotland's (NYSE: RBS) better-than-expected forecast buoyed European banks.
SeaChange International (NASDAQ: SEAC) reported a profit when analysts expected a loss.
Sigma Designs (NASDAQ: SIGM) had a "blowout" quarter, beating even the most optimistic analyst.
SkillSoft (NASDAQ: SKIL) beat expectations of both earnings and revenue.
Toll Brothers Inc. (NYSE: TOL) posted a lower-than-expected loss, its first quarterly loss in 21 years.

Also, Brian White looks at how loss of market share contributed to Dell Inc.'s (NASDAQ: DELL) recent results. Both Douglas McIntyre and Jim Cramer mull the effect on the cable industries of Comcast Corp.'s (NASDAQ: CMCSA) lowered guidance. And Target Corp. (NYSE: TGT) is among retailers warning about earnings in the current quarter.

Upcoming results to watch for include: H&R Block (NYSE: HRB), Kroger Co. (NYSE: KR), Costco (NASDAQ: COST), and Lehman Bros. (NYSE: LEH).

Visit AOL Money & Finance for more earnings coverage.

Permalink | Email this | Linking Blogs | Comments

Krispy Kreme filling holes in balance sheet

Aaron Katsman — 2007-12-06T15:11:00+00:00

Filed under: Earnings reports, Good news, Krispy Kreme Doughnuts (KKD)

Shares of doughnut chain Krispy Kreme (NYSE: KKD) are surging today as the company reported its loss had narrowed to $798,000, or 1 cent a share, in the third quarter ended October 28, from $7.2 million, or 12 cents a share, a year earlier. For the last four years the Krispy Kreme stock has been as tasty for investors as a week-old doughnut lying around uncovered. After trading in the upper $40s a few years ago, the stock has been hit by healthier eating trends, mismanagement, and even bankruptcy by some of its franchisees.

For full disclosure, I try my best to help the stock, as I buy the doughnuts whenever possible, as I think they are awesome. For me, nothing's like a glazed Krispy Kreme.

Notwithstanding today's surge in the stock, the outlook for the company is murky at best. It said that there will be more store closures which will impact revenues. Its balance sheet is nothing to write home about either. As of October 28, the company had about $23 million in cash on its balance sheet, and $88 million in debt. It had about $11 million in additional debt capacity available under its credit facilities.

While I probably wouldn't get near the stock until we see continued evidence of a turnaround in their financials, I would jump at the chance of getting another dozen to eat while I write my next few posts! What's your favorite flavor?

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LLC. and Senior Editor of IsraelNewsletter.com. Disclosure: Writer has no position in any stock mentioned as of 12/6/07.

Read | Permalink | Email this | Linking Blogs | Comments

CEO of the year, 5 surprise stocks & 10 consumer-friendly credit cards - Today in Money 12/6

Allan Halprin — 2007-12-06T09:07:00+00:00

Filed under: Wal-Mart (WMT), Coca-Cola (KO), PepsiCo (PEP), Amazon.com (AMZN), McDonald's (MCD), AT and T (T), Krispy Kreme Doughnuts (KKD), Money and Finance Today, Bristol-Myers Squibb (BMY), Costco Wholesale (COST), Expedia Inc (EXPE), Toll Brothers (TOL), Genentech Inc (DNA)

In the News:

· Bush to Unveil Plan to Help Strapped Homeowners

· Wal-Mart November Sales Rise, Beating Estimates

· Coca-Cola Names COO Muhtar Kent as Next CEO

· Hope Grows for Half-Point Rate Cut

· Toll Brothers Drops to 4th Quarter Loss

· Bank of England Cuts Interest Rates

· Bristol-Myers to Eliminate 4,800 Jobs

· Genetech's Gamble

· Krispy Kreme Loss Shrinks

· Bic Wants to Flick Your Phone

· Lawmakers Seek More Food-Safety Oversight

· AT&T Flings Cellphone Network Wide Open

CEO of the Year
Coming into his own in his third year at the helm of McDonald's, Jim Skinner has made a deep impression. The evidence is on the bottom line, on the menu and on employees' lapels. Other finalists for CEO of year are Indra Nooyi of PepsiCo, Jeff Bezos of Amazon, Michael Ahearn of First Solar and Terri Lanai of MGM Mirage.
CEO of the Year 2007 - MarketWatch
Also: Worst CEO of Year Is Sears' Eddie Lampert

5 Stock Surprises of 2007
These companies should see continuing 2008 growth despite market and economic woes. They are Coca-Cola, Costco, Expedia, Eaton Vance and Chicago Bridge & Iron.
Five Stock Surprises for 2007 - Kiplinger.com

New Rate Freeze May Help Borrowers Bear ARMs
If you're a homeowner sitting with an adjustable rate mortgage that is about to reset to a much higher rate, what should you do? For now, wait to see what help the government will bring.
Homeowners may benefit from relief plan - Bankrate.com

Gift Returns: New Rules Require New Tactics
About 40 percent of Americans take back at least one gift after the holidays. If you find yourself in line to return a gift this season, you're apt to discover that store policies have become stricter. Restocking fees for opened boxes or missing packaging are increasingly common, and not just for electronics. If returning a gift follow our tips and the process should go smoothly. Also, checkout the rules at these 6 big retailers - Wal-Mart, Target, Best Buy, Costco, Sears and Amazon.
ConsumerReports.org - Gift returns: New rules, new tactics Retail Roundup: Rules at 6 Big Retailers

Top 10 Consumer-Friendly Credit Cards
Based on the perceived value of what each card offers to the most people, plus the numbers of online visits to card offers, Capital One's Card Lab was ranked No. 1, according to IndexCreditCards.com. Others making the list are the Gap Visa, BankAmericard, Zappos Rewards Visa, PayPal Debit Card and World of Warcraft Visa.
The 10 top consumer-friendly credit cards of 2007 - MarketWatch

Tats Entertainment: Marketers Get Inked
Looking to make their mark with potential customers, companies across the country are tapping into tattoos as a marketing tool. Businesses are launching products with tattoo-centric names, stamping their logos on temporary tattoos and using ink-covered models in their advertising.
Tats entertainment: Marketers get inked - USATODAY.com

A Lurid Aftermath to a Hedge Fund Manager's Life
A life of private jets and black-tie balls ended with Seth Tobias, a wealthy investment manager and a familiar presence on CNBC, floating face down in the swimming pool of his mansion here. Mr. Tobias, who was 44 years old, had apparently suffered a heart attack, his brother Spence said at the time. But now an unfolding drama over Mr. Tobias's estate is providing a lurid account of fast money and faster living in the volatile world of hedge funds.
A Lurid Aftermath to a Hedge Fund Manager's Life - New York Times

When Warranties Make Sense
In most cases, warranties aren't worth it. But there are a few exceptions. The choice to buy or not to buy is entirely situational. If you and your purchase fit several of these conditions, an extended warranty or service plan may be worth a hard second look.
When Buying a Warranty Makes Sense | SmartMoney.com

Permalink | Email this | Linking Blogs | Comments

Jamba Juice signs deal with Nestle to sell pre-packaged juice

Zac Bissonnette — 2007-12-04T12:58:00+00:00

Filed under: Deals, Products and services, Marketing and advertising, Krispy Kreme Doughnuts (KKD)

Jamba Juice (NASDAQ: JMBA) has been an extremely disappointing performer since it went public through its acquisition by a special purpose acquisition vehicle.

Shares closed at $3.39 on Monday, down from a 52-week high of $11.25 on this day of last year -- A spread of 365 days between the current price and the 52-week high is usually a sign of a difficult stretch.

Perhaps things are getting better: Jamba Juice has reached a deal with Nestle to sell its products at groceries stores in eight states in the western United States. The plan is to eventually expand the program nationally, perhaps internationally, and also target convenience stores and other possible outlets. Nestle (OTC: NSRGY) will manufacture and distribute the beverages.

With its stock in the toilet in light of operational underperformance, this may be just what Jamba needs. But as anyone who witnessed the Krispy Kreme (NASDAQ: KKD) saga can attest, rapid expansion by a premium stand-alone specialty food retailer into mass market distribution can lead to bad results: big losses and irreparable damage to the brand.

Savvy marketing and responsible stewardship of the Jamba franchise on the part of management could make this a big success. But if the company's performance as a public company is any indication, that's not something investors should bet on.

Read | Permalink | Email this | Linking Blogs | Comments

Is Peter Lynch's advice for buying retail stocks obsolete?

Zac Bissonnette — 2007-11-26T19:00:00+00:00

Filed under: Newspapers, Starbucks (SBUX), Krispy Kreme Doughnuts (KKD)

Fidelity Magellan fund manager Peter Lynch became a legend in the 1980's with his supersized returns and folksy wisdom: Buy what you know. In his books, he urged investors to exploit their amateur edge and invest in the stocks of companies they knew from shopping. By latching on to an up and coming chain, investors could find those elusive ten-baggers, he suggested.

Fast forward to 2007. In the past few years, we've seen instances of this strategy leading to disastrous results. Krispy Kreme Doughnuts (NYSE: KKD) was all the rage as it expanded nationally. But alas, overexpansion and accounting woes made that stock a -10 bagger, with investors losing 90% of their value in some cases.

And as the New York Times writes, Starbucks Corporation (NASDAQ: SBUX) stores are as hot as ever, in that they always seem to be packed. But same store sales are struggling, and the stock is well off its highs.

Is Lynch's wisdom outdated? Maybe. One problem is that the eighties were an era filled with regional going national stories. Now, nearly every industry seems to have a dominant player with a national presence. It just isn't easy to find a company that's selling hot in your city but hasn't yet reached the other coast yet.

Read | Permalink | Email this | Linking Blogs | Comments

Funny bidness -- US Airways passengers can't drink over NM

Tom Barlow — 2007-11-21T16:30:00+00:00

Filed under: Products and services, Launches, Krispy Kreme Doughnuts (KKD), US Airways Group (LCC), Japan

Just when I thought flying couldn't become more unpleasant comes word that US Airways (NYSE:LCC) passengers will have to fly over New Mexico dry. Apparently, the airline is in a tiff with the state's alcohol regulators, who have refused to give them a permit to serve booze while in or over the state. Apparently, the state extends into orbit.

Stuck for what to bring to that Thanksgiving potluck? I'm thinking a cheesecake would be nice, but...I wish there was a way to make it a little more fattening. Thankfully, Lisa Robertson of North Carolina showed me the way with her award-winning Krispy Kremey White-Chocolate Raspberry-Filled Cheesecake, which uses Krispy Kreme (NYSE:KKD) donuts for its crust.

Fancy perfumes have been tied to celebrity endorsers for as long as there have been celebrities, but I was taken aback by Coty's latest pitchman. It recently announced the creation of a new line of scents under the name of country singer Tim McGraw. I'm betting there'll be the aroma of whup-ass in every bottle.

Finally, for those of us who sing in the car comes a great idea from Japan. There, engineers are testing "melody roads", roads with surface grooves and cuts that cause a car to vibrate such that it creates recognizable songs-- but only when driven at the proper speed.

Ironically, to hear the song "I Can't Drive 55," the driver has to drive... 55.

(I made that last part up.)

Story stocks or fairy tales?, beware hidden mortgage fees & top givers of 2007 - Today in Money 11/19

Allan Halprin — 2007-11-19T09:09:00+00:00

Filed under: XM Satellite Radio (XMSR), Sirius Satellite Radio (SIRI), Citigroup Inc. (C), Krispy Kreme Doughnuts (KKD), Money and Finance Today, Goldman Sachs Group (GS), Washington Mutual (WM), Jones Soda (JSDA), Crocs Inc (CROX), Taser Intl Inc (TASR)

In the News:

· Gas Prices Near All-Time High as They Rise 13 Cents Over Past 2 Weeks

· Citing Weak Sales, Lowe's Posts Lower 3Q Profit

· Goldman Sachs Rakes in Profit in Credit Crisis

· Chrysler Reportedly to Kill off the PT Cruiser After 2009 Model

· Housing, Credit Markets May Hurt Economy

· Celgene to Buy Pharmion for $2.9 Billion

· Swiss Re Takes $1.1 Billion Hit Related to Subprime

· Goldman Downgrades Citigroup to 'Sell'

· NJ Governor Called 'Thanksgiving Grinch'

· Retailers Gear Up for Cyber Monday

Story Stocks or Fairy Tales?
Some companies' growth potential causes investors to go weak in the knees, as they did for Crocs. Here are some signs of a hot prospect that's headed for an unhappy ending. As investors look for the next Google or Apple they look to story stocks like Crocs along with Jones Soda, First Solar, Krispy Kreme, Taser, Sirius & XM, Under Armour and more in hopes of making a killing in the stock market.
Story Stocks or Fairy Tales?
Also: Are These 11 Stocks 'The Next Big Thing'?

Hidden Mortgage Fees
As foreclosures continue to plague the subprime market, a little-known industry practice is further hurting homeowners who are already having trouble keeping up with their ballooning mortgage payments: excessive and questionable fees.
Struggling Homeowners Faced With Hidden Mortgage Fees | SmartMoney.com

The Greatest Givers
BusinessWeek's fifth annual ranking of the top U.S. philantropists include 16 people who gave over $100 million this year. The top giver this year is billionaire investor Warren Buffett who has committed $31 billion to the Bill & Melinda Gates Foundation.
The Greatest Givers
In Pictures: 50 Most Generous Philanthropists
Also: Philanthropy Hall of Fame which includes Paul Newman, Bob Geldof, Bono, Oprah, Jimmy Carter, Lance Armstrong and more.

Can Disney Keep Its $4 Billion Princess Franchise Growing?
Under pressure to keep its $4 billion Princess franchise growing, Disney is hoping to hook even younger girls and their moms on the craze with a new range of princess products aimed at newborns.
Disney Reaches to the Crib To Extend Princess Magic - WSJ.com

Do You Have a Will?
Three-quarters of Americans say everyone should have a will, but 57% of Americans don't have one. Parents of kids younger than 18 make an even poorer showing: 67 percent don't have a will.
Americans' words and deeds about wills at odds - Bankrate.com What You Need to Know About Wills 8 Estate Planning Mistakes to Avoid

Permalink | Email this | Linking Blogs | Comments

A healthy donut? Gold from lead?

Zac Bissonnette — 2007-09-16T18:10:00+00:00

Filed under: Products and services, Consumer experience, Marketing and advertising, Krispy Kreme Doughnuts (KKD)

The Boston Globe reports that "For more than four years, a small team huddled in the Dunkin' Donuts research lab trying to crack the code for a doughnut without trans fats that tasted just like those on which the chain had built its reputation over the last half century."

And now, at last, they have done it. In a few weeks, Dunkin's 5,300 stores will introduce trans-fat free donuts. While they can hardly be considered a health food -- they still contain the same amount of total fat -- this has to be considered a major accomplishment. Just a few years ago, there was doubt about whether such a feat could be accomplished. Competitor (sort of like saying the Tampa Bay Devil Rays compete with the Yankees ...) Krispy Kreme Doughnuts (NYSE: KKD) is still working on a trans-fat free donut, and doesn't yet have anything ready to market.

What's next for these doughnut-engineers? How many years are we away from a truly healthy donut? Will fat-free, sugar-free ice cream ever taste like something other than opening the freezer and sticking your head in? All of this talk about healthy junk food reminds me a bit of alchemy, but researchers seem to be making progress.

But would a healthy donut even be fun? Or would it become to common-place to count as a treat, and lose its allure?

Permalink | Email this | Linking Blogs | Comments

CIBC World Markets downgrades Krispy Kreme (KKD)

Zac Bissonnette — 2007-09-10T18:04:00+00:00

Filed under: Analyst reports, Analyst upgrades and downgrades, Krispy Kreme Doughnuts (KKD)

If you had a target of $11 on Krispy Kreme (NASDAQ: KKD) when the stock was at $6.33 and then the company reported a horrible quarter and the stock tanked more than 38%, what would you?

If you're CIBC, you would issue an "oops", but still manage to maintain an authoritative tone. CIBC "removed" their price target of $11. Not lowered, just removed. Poof. Gone!

The analyst pointed out, quite correctly, that many of the cures management talked about in the earnings release and on the conference call have already been tried or are currently in place. The company is also facing a liquidity crunch, and declining revenues are doing little to help that.

But CIBC really should have seen a lot of this coming. Herb Greenberg, among others, has been diligently explaining all that is wrong with this company and stock for awhile and, based on the price/sales ratio the stock was commanding, the buyout rumors appeared to be completely unfounded.

In other news, Krispy Kreme announced today that it has begun the "search for the ultimate Krispy Kreme doughnut dessert recipe. Join the fun and submit an original recipe using any variety of Krispy Kreme doughnuts for a chance to win Lodge cookware, a Viking mixer and Krispy Kreme gift cards -- a prize pack worth $1,700!"

It's hard to imagine that there was a time when meaningless news like this actually got investors excited about Krispy Kreme. But now the hype has been exposed as very similar to the company's famous donuts: very sweet, but full of empty weight and lacking in substance.

With a market cap of $226 million and concerns about the company's viability and balance sheet, KKD shares still don't look appealing.

Read | Permalink | Email this | Linking Blogs | Comments

Krispy Kreme (KKD) shares lose a few pounds

Zac Bissonnette — 2007-09-07T18:15:00+00:00

Filed under: Bad news, Krispy Kreme Doughnuts (KKD), Stocks to Sell

Shares of Krispy Kreme (NASDAQ: KKD) tanked more than 38% today after the beleaguered donut chain reported a terrible quarter.

Revenue fell 7.5%, and the company lost $27 million, compared with $4.6 million in the same quarter of last year. Results were hurt by impairment charges and lease termination costs as the company closes underperforming locations. The shares closed at their low for the day, $3.91, which is roughly the lowest the shares have traded in the company' history. The stock had traded at over $12 as recently as January.

Analysts quoted in the latest AP coverage of this mess have a hard time being optimistic. As BB&T Capital Markets analyst Andrew P. Wolf said, "the nascent turnaround at the company has (at best) stalled."

Hmm. Krispy Kreme's CEO Daryl Brewster talked about the company's turnaround plans, and added that "The only things nonnegotiable are our consumers, our brand and our quality."

But the company's overly-aggressive expansion may have hurt its brand and quality: Are donuts available at grocery stores and kiosks really something you associate with a premium brand?

It's great that the current management is focused on the brand, but overexpansion may hurt that image beyond repair. And although takeover rumors have surrounded the company since its decline began, it really doesn't look all that cheap, even after the decline.

In a blog post today, MarketWatch's Herb Greenberg wonders about the company's solvency: "Especially troubling is the company's concession that for the six months it's not in compliance with EBITDA covenants with its lenders -- not good when cash and cash flow are going down, as is the case at Krispy Kreme."

Restructuring would appear to be a real possibility at some point, and dieters as well as investors would do probably do well to avoid Krispy Kreme for now.

Read | Permalink | Email this | Linking Blogs | Comments

Option update: Volatility elevated in KKD, PALM & IDCC

Paul Foster — 2007-09-07T14:40:00+00:00

Filed under: Krispy Kreme Doughnuts (KKD), Palm Inc (PALM), Options

InterDigital (NASDAQ: IDCC) volatility elevated as IDCC rallies off lows on contract win.

IDCC, a designer, developer and provider of wireless technologies, is recently up nearly 13% or $2.75 to $23.96. IDCC signed a seven-year licensing agreement with AAPL on 9/6/07. IDCC has customer licensing agreements with LG, NEC, Sharp, Panasonic, NOK & Sony-Ericsson. IDCC call option volume of 5,379 contracts compares to put volume of 222 contracts. IDCC September option implied volatility of 65 is above its 26-week average of 42 according to Track Data, suggesting non-directional price fluctuations.

Palm (NASDAQ: PALM) October volatility elevated into early October EPS.

PALM is recently down $0.25 to $15.32. PALM is expected to announce EPS on 10/1. PALM is developing a new handset operating system for its Treo product line. The new operating system is expected to be out in late 2008. PALM announced a strategic recapitalization with Elevation Partners on 6/4/07. PALM option implied volatility of 47 is above its 26-week average of 38 according to Track Data, suggesting larger risk.

Krispy Kreme Doughnuts (NYSE: KKD) volatility elevated as KKD trades near historic lows.

KKD operates and franchises 300 doughnut shops with over $450 million in revenue. KKD is down over 27% $1.73 to $4.60. CIBC says, "downgrading to Sector Underperform from Sector Performer on Flagging sales and liquidity concerns." KKD call option volume of 682 contracts compares to put volume of 1,465 contracts. KKD October option implied volatility of 69 is above its 26-week average of 45 according to Track Data, suggesting larger risk.

Daily options Update is provided by Stock Specialist Paul Foster of theflyonthewall.com.

Permalink | Email this | Linking Blogs | Comments