Krispy Kreme Gets Dunked on Expansion Worries and 2 More Heavily Traded Stocks to Follow
Krispy Kreme Doughnuts Inc. (NYSE:KKD): Current price $19.73
Shares are down about 14.5 percent in heavy trading Friday over expansion-cost worries. The 76-year-old firm went public in April 2000 at $5.30 per share and the stock soared as Americans took in the company’s products as a favorite comfort food, running up over 800 percent to an all-time closing high of $49.37 on August 18 of that year, prior to going to the dark side after posting weak earnings. The shares lost 96 percent of their value during the next five years, bottoming out at $1.76 on Nov. 28, 2008.
J.C. Penny & Co. (NYSE:JCP): Current price $12.48
Perry Capital LLC has taken advantage of Bill Ackman’s exit from Penney’s to snap up 3 million shares at a then-discounted $12.90 apiece. The hedge fund said Friday that it now owns 8.6 percent of the iconic retailer, up from the 7.3-percent stake it had earlier in August when it moved in during a public board dispute.
On August 9, Perry Capital observed in a letter to the board that, “shareholders and creditors have increasingly lost confidence in the company,” and pressed the board to change management. The fund announced that it would be “very supportive” if J.C. Penney were to bring back the former executives Allen Questrom and Ken Hicks, about whom there has been speculation.
Nokia Corp. (NYSE:NOK): Current price $3.90
On Friday, Nokia announced its intention to become a much larger technological force in vehicles, as it debuts Here Auto, which is an embedded infotainment and connected car system that targets at the world’s auto manufacturers.
Executive Vice President Michael Halbherr of Here Auto will speak at GigaOM’s Mobilize conference in October. He recently shared the Finnish phonemaker’s broader connected car vision, which will ultimately include autonomous driving and integration of the vehicle into future “smart city” networks.