The stock opened the day at $5.52, and by 11:30 a.m. had dropped to $4.05, a 26.6 percent plunge. Trading in the stock was also much heavier than usual Wednesday, with nearly 5.2 million shares having changed hands by 2 p.m., more than five times the average daily volume of 913,276 shares.
Krispy Kreme issued a news release saying it didn't know what was causing the unusual trading activity -- an unusual move for the company. Public companies tend not to comment on the trading activity in their stocks.
2-1 they go bankrupt.
After listing to a seminar from a guy from the finance dept. here at K-State, I am even more cynical about stocks. He basically said that insider trading happens all the time... and a bunch of people dropping stock means that the company is not doing good.
Noooooooo!!
ReplyDeleteNot Krispy Kreme!!
OK, I've come to terms with it. KK expanded too fast and hired bad accountants. That's too bad. Still, they make the best donuts ever.