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

To: Jon Koplik who wrote (925)	3/4/2005 4:28:55 PM
From: Wowzer	Read Replies (2) \| Respond to of 1001

Krispy Kreme stock up 20 pct on Buffett talk Fri Mar 4, 2005 04:07 PM ET LOS ANGELES, March 4 (Reuters) - Shares of Krispy Kreme Doughnuts Inc. (KKD.N: Quote, Profile, Research) soared more than 20 percent on Friday on market talk that legendary value investor Warren Buffett may take a stake in the struggling doughnut chain, traders said. "The stock is up on market talk that Warren Buffett might be taking a position in the company," said Paul Foster, chief options strategist at theflyonthewall.com. "There are a lot of rumors," said another options analyst who declined to be named. Buffett's Berkshire Hathaway Inc. (BRKa.N: Quote, Profile, Research) did not immediately return calls seeking comment. A Krispy Kreme spokeswoman said she would not respond to rumors or speculation. "Buffett has a long history of financing needy companies willing to pay a high interest rate with convertible debt. Buffet already owns Dairy Queen and this could be a nice combination," Foster said. Shares of Krispy Kreme, a one-time darling of Wall Street have been slammed in the wake of a U.S. Securities and Exchange Commission probe into its accounting and a sharp fall-off in sales of its signature doughnuts. In recent weeks, the Winston-Salem, North Carolina company's stock has also been hard-hit by speculation that the chain may be forced into bankruptcy if it is unable to cover bad loans made to struggling franchisees. It has dropped over 40 percent since the beginning of the year. Krispy Kreme is also in danger of defaulting on a $150 million credit facility if it does not meet a March 25 deadline to file its most recent financial statements or reach a deal with its lenders. Krispy Kreme shares closed up $1.38 or 22.5 percent, at $7.50 on the New York Stock Exchange. The stock hit a high of $7.60 earlier in the session yahoo.reuters.com