Krispy Kreme hits high volume with announcement
In addition to a big price increase, Krispy Kreme has a lot of new buyers today on the news that the company has hired Daryl G. Brewster as its new CEO.
Its shares are already up more than 16 percent at $7.46. Volume has nearly quadrupled to 4.6 million shares.
For the past three months, average daily volume has been around 1 million shares. Investors have gradually turned away from the company as its problems mounted and its failure to file a financial report dragged on.
A popular Krispy Kreme message board on the Yahoo site is buzzing with suggestions that many buyers are snapping up the shares so they can sell them “short” to make a profit when the stock drops in a few days – assuming that it does.
In any case, this new CEO is a strong step forward for the company that has been in suspended animation for a couple of years. Brewster comes from Kraft, where he ran its $6 billion North American snacks and cereals division.
“The fact that he comes from Kraft and ran a $6 billion operation, and he's now willing to take on this challenge, is a positive sign," Morningstar analyst John Owens told the Associated Press. "It's also a positive the board has come to the conclusion the restructuring guys have completed what needs to be done and the company is ready to move forward."