Cramer Flip-Flops on Krispy Kreme

Wasn’t Jim Cramer, a week or so ago on Mad Money, telling people to steer clear of Krispy Kreme (KKD)? Now he’s telling them to buy it – and that he agrees with the recommendation of Prudential Equity analyst Howard Penney, whose flawed argument (based on his creation of a forecast when the company was more than a year late in filing numbers) was the focus of my piece over the weekend in the Wall Street Journal.

For those tempted by the stock, not the glaze, just remember: While the company last week filed its 10-K from the fiscal year that ended in January, it still hasn’t filed numbers for the first three quarters of this year. It hasn’t publicly outlined its turnaround strategy. And CEO Daryl Brewster, while highly regarded in the packaged foods industry, has no restaurant background.

Doesn’t mean he won’t figure it out, but until there is evidence he has – and that lenders and others won’t get in the way – this is a stock market equivalent of a day at the races. And based on current handicapping, it's a long shot, at that.

See: Jim Cramer's take on KKD