Free Donut Day: Does It Mean Krispy Kreme's (NYSE: KKD) Stock is a Buy?
The battle is on. Today both Krispy Kreme (NYSE:KKD - News) and Dunkin Donuts announced that their chains are offering up free donuts. Because of high web traffic the media is all over this trend, and has termed it 'National Donut Day'. We like traffic web traffic here, but we really prefer high volume spikes in small cap stocks we're following. We covered Krispy Kreme in an article on May 26th, when Ian Wyatt suggested, "I would wait to see a pull-back in shares before buying...If it does, I would most likely add to my position because if the company continues to move in the right direction on a fundamental basis, which I think it will, a move to $13 is not out of the question." So far today, shares of Krispy Kreme are bucking the market's trend and instead of falling, are rising by more than 1.5 percent. It seems as though higher store volume may translate into higher share volume, at least on National Donut Day.
You can find Ian's article about Krispy Kreme on our Small Cap Investor Blog.
