• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Stocks

The Hot Sign at Krispy Kreme Is Still Off

Here's why I detect a hole in the charts.
By BRUCE KAMICH
Aug 18, 2021 | 07:53 AM EDT
Stocks quotes in this article: DNUT

For his second "Executive Decision" segment of Mad Money Tuesday evening, Jim Cramer spoke with Mike Tattersfield, president and CEO of Krispy Kreme (DNUT) , the doughnut chain.

The company just posted a penny-a-share earnings miss, but reaffirmed its year-end guidance.

Tattersfield said despite the earnings miss, Krispy Kreme had its best second quarter in the company's history. Those strong results were led by the company's global footprint and its transition to an omni-channel model. 

Tattersfield also touted their vaccination reward program. He said anyone that's vaccinated can show their card at any Krispy Kreme and get one free doughnut every day throughout the rest of the year.

Let's check on the charts.

In the daily Japanese candlestick chart of DNUT, below, we can see all of the trading since the IPO in early July. Prices have slipped lower and lower and are trading below the declining 20-day moving average line. Most of the candles are red which tells us that the close has been lower than the open.

The On-Balance-Volume (OBV) line is in a downtrend as there has been heavier volume traded on down days than up days. The 12-day price momentum study shows equal lows for momentum which is a bullish divergence when compared to the price action making lower lows.

In this daily Point and Figure chart of DNUT, below, we can see the price decline charted a different way. Prices have reached a downside price target in the $14 area. Prices will need to form a base pattern before we can expect a rally.

Bottom-line strategy: Prices need to show us signs of bottoming before we can recommend the long side of DNUT.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: IPOs | Earnings | Investing | Stocks | Technical Analysis | Food & Drink | Mad Money | Executive Interview

More from Stocks

Lopsided Market Returns

James "Rev Shark" DePorre
Jun 5, 2023 4:22 PM EDT

Despite the intraday reversal in Apple, Microsoft, Alphabet, Amazon, and Tesla, all helped the Nasdaq 100 outperform the other indexes as the small caps disappointed.

How to Trade MongoDB After Its Huge Upside Move

Bruce Kamich
Jun 5, 2023 1:45 PM EDT

Let's check out the charts and indicators for clues.

This Value Portfolio of Lovable Losers Is Down But Not Out

Jonathan Heller
Jun 5, 2023 1:10 PM EDT

With about six months to go, anything can happen for the 2023 Tax Loss Selling Recovery Portfolio.

Friday's Cheer Turns to Monday Drear

James "Rev Shark" DePorre
Jun 5, 2023 11:35 AM EDT

Even the bulls will likely agree that this market needs better participation and breadth.

As Palo Alto Networks Joins the S&P 500, Here's How to Play the Stock

Stephen Guilfoyle
Jun 5, 2023 11:24 AM EDT

This 'best-in-class' cybersecurity name was already hot, before the news.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login