Oh, let me guess. The fundamentalist who's arguing against me in today's Face-Off is railing against
Krispy Kreme Doughnuts(KKD Quote - Cramer on KKD - Stock Picks). And I bet it's the normal stuff about valuation, growth rate, profitability, etc. Let's see, if we're lucky, there's probably some gem about Krispy Kreme having 100 times the market cap
of ...
McDonald's(MCD Quote - Cramer on MCD - Stock Picks) (that's not true, by the way, but you get my point).
Again, though, this is where the fundies always fail. Sure, they tell a good story. An honest story. A credible story. But, it's still the
wrong story! The real story -- and, frankly, all you need to know -- is that KKD is one strong stock!
Look, I don't think it should be where it is. And candidly, every time it looks as if it's breaking down, I want to short the thing. But it doesn't break down for long and instead always rallies back. So don't fight it. Instead, get long when it makes its next breakout!
Remember, most of the die-hard fundies missed the '98-'99 tech rally because of "valuation." Sure, they cluck now that they avoided the big selloff. But, I'll tell you, if you paid even one iota of attention to technical analysis, then you could have made a bundle during that run-up and still have gotten out in plenty of time to avoid the worst of the selloffs. That's the stuff the fundies never tell you, though!
Who won today's Face-Off?
Gary B. Smith
Glenn Curtis
Gary B. Smith
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