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Non-Tech : Krispy Kreme Doughnuts, Inc. (KKD) -- Ignore unavailable to you. Want to Upgrade?

To: JLIHAI who wrote (179)	4/16/2000 11:41:00 AM
From: Bobbie Boucher	Read Replies (1) \| Respond to of 1001

Am I the only one that read the numbers here? They are losing money. Management had enough and cashed out. Net tangible book value per share as of January 30, was $5.11. That is what the company is worth per share if you sold it off, This mean selling every franchise, stool, coffee machine and trademark. Company in most cases trade at or near book. A company that trades under book is usually taken over. But this one 6 times book? please.. They are about to dump more stock BTW: The company stated... "As soon as practicable after this offering, we intend to register for resale 2,153,000 shares of common stock reserved under our stock option plan, of which options exercisable into 1,821,000 shares of common stock were outstanding as of January 30, 2000." This means more dilution of the stock. I figure this takes boo value to around $4.80 max... and once again they are dumping more stock. Use of proceeds... This is another red flag! When Quest went public, they used the proceed of the offering to create a nation wide fiber optic network that is now the backbone of most U.S. long distance. Great companies use the proceeds to expand. To grow into something great. These guy are using it to pay off debt from poorly run operations and to cash out. The tell us that they expect to use our net proceeds for the following purposes in the following approximate amounts: - Repayment of $30 million in borrowings under our loan agreement, which we anticipate will be outstanding when we consummate this offering - A distribution of $7 million to our existing shareholders as part of our pre-offering corporate reorganization - $10 million for remodeling and relocation of selected older company-owned stores. From a logical standpoint, based on the numbers and the actions of management this is a $4.00 stock waiting to happen.