Making Dough In Krispy Kreme After Q1 Beat

em>Joel Elconin is the co-host of

, a daily trading idea radio show.

Krispy Kreme Doughnuts

shares are trading higher by $2.17 at $19.57 in Thursday's session. The catalyst for the sharp rise in price is a Q1 beat for adjusted EPS ($0.24 vs. $0.22) with a miss on sales ($132.47M vs. $135.99M). In after-hours trading it immediately spiked from Wednesday's close ($17.40) to $18.50 and remained at the level until the opening of Thursday's session. AFter a slight retreat off the open, it raced to $20.38 in the forty-five mintues of trading. That marks the issue first time over $20 since April 13, when it peaked at $20.11 before swooning to $16.90 on May 26. Prior to today's action it had been in a trading range between the recent low and $17.76 since May 6. Once it cleared the top of the range by a wide margin shorts were sent scrambling for cover resulting in the unusual price movement. Since reaching that elevated level, it has fallen back $20 and is attempting to mount a rally to close over $20 for the first time since .April 8, when it ended the session at $20.34. The rally is taking place on much heavier average volume. So far, 5.6M shares have changed hands compared with its 20 day average of 800k with over one hour remaining in the trading day.