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


To: Mike Petriv who wrote (202)4/18/2000 1:26:00 AM
From: Jon Khymn  Read Replies (2) | Respond to of 1001
 
Mike, did you do some shopping today?

Man there were so many bargains I had hard time picking all the goodies.... Think I'm done X-mas shopping already.

>>the sweetheart 7 million distribution, the low book value, the high P/E. <<

You mean you didn't know they would distribute 7mil and pay off 30 mil debts? They told us where the money will be used long time ago... Nothing new & nothing wrong with it.

In fact I like KREM managers decision to pay of loans.
Healthier balance sheet and guess what? Yes, low interest expense means higher bottom line profit. I expect P/E to go down fast over the next year or two.

Let's compare KREM with SBUX, book value 5 1/2, and P/E 60.

Personally KREM looks better than SBUX at this point.
SBUX is fully saturated in U.S., no room to grow.
KREM has plenty of room to grow for next 20 years.