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Krispy Kreme's (NYSE:KKD) stock Thursday rose on unusually heavy volume. A Dow Jones News story a half-hour before the market closed said an outside spokesman said there was no news to explain the stock's 4.8% rise on 1.1 million shares -- more than triple average daily volume for the past three months. In fact, one of the few firm's still covering the stock -- Morningstar -- dropped coverage, saying that it is redirecting resources to researching other companies.

Now hear this: An hour-and-a-half after the close a report by Prudential Equity Group analyst Howard Penney hit First Call with his initiation of coverage with an overweight rating and a 12-to-18 month target of $15. The report, dated Thursday, has Thursday's closing price.

Never mind that in a market like this a report like that can set a fire under a stock, even if it's undeserving. (And I'm not saying it is or isn't -- or if a recommendation of a company like Krispy Kreme is yet another sign of a toppy market.) A bigger question here, your honor, is who knew what when? Something tells me we will find out.

KKD 2-day chart:


Source: Krispy Kreme: Who Knew Something Yesterday?