We like the Krispy Kreme story.
KKD is a small cap growth company with a growing global footprint and the potential to double in size over the coming years.
It’s also a volatile stock that will see large swings in sentiment given the company’s checkered history. That being said, we believe it’s very likely KKD will wind up in the hands of a bigger company. The company’s aggressive growth plans and strong balance sheet make it an attractive acquisition target for a foreign company.
$18.16 is long term TAIL support KKD. I like it if that holds.
(Click here to watch Penney video, "Why You Should Short Casual Dining Stocks")