Jim Cramer on Krispy Kreme: 'Company Seems Worth More Than It's Selling For'
Jim Cramer addressed investor speculation about a potential Berkshire Hathaway acquisition of Krispy Kreme, suggesting the company seems undervalued while warning against relying on the rumor.
Speculation about a potential acquisition of Krispy Kreme (DNUT) by Berkshire Hathaway (BRK-B) caught the attention of Jim Cramer, host of CNBC's Mad Money. During a recent episode, Cramer remarked that the company appears undervalued but cautioned against betting on the acquisition rumor.
Details of the Remark
Responding to a caller who cited "social buzz" about Berkshire buying Krispy Kreme, Cramer said: "I don't want people to think that we can bet on Berkshire Hathaway buying because then…" He added that the company "does seem to be worth more than it's selling for," potentially indicating an undervalued stock.
Context
The comments come amid volatility in Krispy Kreme shares, with investors watching for any signals of major M&A. Berkshire Hathaway is known for long-term investments in consumer companies, but no official confirmation has been made regarding interest in Krispy Kreme.
What It Means for Investors
Investors should exercise caution when trading on unconfirmed rumors. Cramer's remark reflects a personal opinion and not a buy recommendation; official disclosures from both companies should be monitored.
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