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Non-Tech : Krispy Kreme Doughnuts, Inc. (KKD)
KKD 21.000.0%Aug 4 5:00 PM EST

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To: Kevin Podsiadlik who wrote (695)3/29/2001 1:28:26 AM
From: Jon Khymn  Read Replies (2) of 1001
 
It all started with that famous "what"...

Kevin, have you done any comparison on lock up expiration and the stock price movement?

While ago I compared about 100 stocks in 4 months time frame (2 months before and 2 month after).

To my surprise, more stocks actually fell during 2 to 6 weeks PRIOR to the lock up expiration date than after the lock up date.

Eventually, KREM's p/e should come down to 15-20, either by higher earnings or lower price...
I would say it ain't gonna happen in a month or two, more likely in about a year or two.

Finally, if you're shorting KREM because of its high p/e, then consider shorting SBUX. That pig also has high p/e of 73. Do you think SBUX has any room to grow? There are already 3 SBUX store in our town, just about every corner...
On the otherhand, KREM still has much room to grow. They are just beginng to expand.
I'd rather go short SBUX at this point.
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