Krispy Kreme Doughnuts
One stock that's seen some huge insider buying is Krispy Kreme Doughnuts (KKD), which operates as a branded retailer and wholesaler of doughnuts, complementary beverages and treats, and packaged sweets. Insiders are paying up to own stock here since shares of KKD are up over 34% so far in 2011.
This company has a current market cap of $633 million and an enterprise value of $643 million. The stock isn't cheap, trading at a trailing price-to-earnings of 51 and a forward price-to-earnings of 22. Krispy Kreme recently announced that it's taking steps to expand its menu to include healthier choices, in addition to its popular donuts. This move could provide a boost to earnings in the coming quarters since the current consumer trend is towards healthier foods.A beneficial owner just bought 243,181 shares, or $2.4 million worth of stock, at $9.69 to $9.80 per share. From a technical standpoint, shares of KKD recently ran into some big overhead resistance at around $10.08 a share. The stock has now traded below some short-term support at $9.40 a share. The next major support level sits at $8.73 a share, and if that level is broken, then look for a test of $8.11 to $8 a share, which is a major consolidation support zone. If you're looking to buy this stock, I would wait to see if it trades down toward the 50-day moving average at around $8 a share. If that level can hold, then look to scoop up some shares with a tight stop just below that level in case KKD wants to fill a previous gap, which would take the stock back toward $6.30 a share. It's worth noting that KKD has a reasonable short interest of 6.4% of the tradable float. The short-sellers might be back in control of the stock right now since the chart pattern of higher lows has been broken with the recent break below $9.40 a share. >>Practice your stock trading strategies and win cash in our stock game.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV