Overglazing Krispy Kreme's News

Exalted, his importance magnified by being ranked the No. 1 business journalism critic in the nation by both the Maven's Mom survey and the Talking Biz Web site, The Business Press Maven will only descend from his perch for a hair-pulling, shin-kicking street fight in one circumstance: when someone dares to defy common decency by screwing up reporting about doughnuts.

This is not even a misjudgment made about a significant company. But as a journalist, I would rather be torn apart by wolves than bury a lead about doughnuts. And for you, the savvy investor, the mistake stands as a perfect example of how easy it is to elicit unduly, prematurely favorable coverage for even the most troubled company. Just send a nonspecific press release across the wire and nonspecific-but-favorable coverage (perhaps more favorable than even the press release) is sure to follow.

While The Business Press Maven was busy putting Countrywide's(CFC) Angelo Mozilo out of investors' misery on Friday, Krispy Kreme Doughnuts(KKD) came ambling along with a press release.

Recall that Krispy Kreme rode its Homer Price doughnut machines to high-flying status in the stock market before proving the Godfather more accurate than Peter Lynch when it comes to investing.

Peter Lynch was famous for saying that investors should follow their personal taste and those of their families. But, though I loved Krispy Kreme's product, as did my family, every aspect of the company's operation meant you were better off to heed Clemenza more than Lynch and: "Leave the stock. Take the doughnut."