I like to start my day reading the Financial Times with my first several cups of coffee. It's a well written paper and you get a very different worldwide prospective from across the pond. This morning, I learned that O'Bama is Irish and that Krispy Kreme Doughnut (KKD) has expansion plans in Europe. The article said KKD was trying to become a midday coffee destination and would be looking for ways to increase their coffee and hot chocolate sales. While researching the company, I found Robert P Stiller, Founder and Chairman of Green Mountain Coffee Roasters (GMCR) recently bought 3.5 million shares, which is over a 5% interest in KKD. I'm not that bright, but I can connect a few dots on this one. Let's see what everyone else thinks of the stock by looking at the price momentum on Barchart.
- 100% Barchart short term technical buy signals
- Trend Spotter buy signals
- Above its 20, 50 and 100 day moving average
- 12 new highs and up 46.10% in just the last month
- Relative Strength Index is 84.90% and rising
- Trades around 8.05% with a 50 day moving average of 5.93
- Wall Street brokerage analysts have done a complete 180 turnaround on their opinion of this stock with 2 strong buy, 1 buy, 4 hold and no negative recommendations released
- Sales are projected to increase by 6.20% this year and another 7.10% next year
- Earnings estimates are the real story with earnings expected to increase by 64.70% this year, another 39.30% next year and continue with an annual increase of 50.00% a year for the next 5 years
- I want you to take special notice of a divergence of the opinion of the professional and individual investor
- On Motley Fool almost 1,000 readers express an opinion on this stock
- CAPS members are mixed with a vote of 387 to 384 that the stock will beat the market
- The more experienced All Stars are equally split 99 to 99
- This is not a real vote of confidence
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.