Question: Do you agree with all of those shorts on Krispy Kreme (KKD - commentary - Cramer's Take)?

-- M.M.

Answer: No. Shorting Krispy Kreme is too pat, too easy and shortsighted as well. With 20% of its share base now shorted, it's also too popular. I don't care much about earnings and other traditional metrics here. Ask yourself a simple question: Is Krispy Kreme, with minimal current domestic store coverage, going to be a lot bigger company over the next several years? I think the answer is yes.

With an annual revenue run rate of only $700 million or so, the market cap of $2.5 billion seems much too high. But the company can easily grow into -- even outgrow -- this market value.

Shorts here are in peril of being "Starbuxed." Shorts of Starbucks (SBUX - commentary - Cramer's Take) didn't believe in the rapid store buildout of the past few years. And those shorts have paid the price. Starbucks, by the way, generates more than $3 billion in revenue and sports a $10 billion market value. I wouldn't be surprised if Krispy Kreme approaches half of that in three to five years: $1.5 billion in revenue and $5 billion market value.

If I'm right, current shorts who hold fast will lose much more than 100%. I think the stock price will double, plus the shorts have to pay the carrying cost of the short (margin interest).