Long Position on KKD @ $13.00 on 2/14/2013 (Rumor)

Krispy Kreme Doughnuts (KKD) operates as a branded retailer and wholesaler of doughnuts, beverages, and treats and packaged sweets worldwide.

Krispy Kreme Doughnuts, Inc. also operates franchise stores; and manufactures and sells doughnut mixes, other ingredients and supplies, and doughnut-making equipment. The company sells its products through owned and franchised factory and satellite stores, as well as through wholesale sales channels, including convenience stores, grocery stores/mass merchants, and other food service and institutional accounts. As of October 28, 2012, it operated 96 company stores and 635 franchise locations.

Shares have formed a bullish "flag" and are expected to head higher out of this formation. We are now hearing rumors of good news for this company. One of the rumors states that this stock will be named by the leading stock advisory service as one of its "top picks." This service is widely followed by mutual funds and institutional money managers. These investors have portfolios that mimic recommendations of this service. Their naming of the stock should lead to additional demand for the shares. 

52-Week Trading Range:  $5.86 - $13.39

Entry Point:  $13.00

Stop Loss:  $12.35

Target Price: $14.30

Updates

3/4/2013 2:12:08 PM

We are closing KKD position after it reached our target price. The position was closed at $14.30 for a gain of 10.3%.

Position closed on 3/4/2013 at price of $14.30 with a 10.00% gain in 18 days.

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