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Dunkin' Donuts set to Begin trading tomorrow one of eleven companies to go public this week making it the busiest IPO week on Wall Street since 2007 while investors scramble to get their hands on the next big thing do these companies live up to the -- would question take a look at crispy -- for exam is another fan favorite donut company it's down 75%.
In the last ten years.
After did have a red hot start so should investors jump in -- Avoid popular brand names like Dunkin' Donuts when they first at the straight for that we bring in rob side is that asset management founder and senior portfolio manager great to see Iraq so will.
Dunkin' Donuts flop like like Krispy -- did.
I'm not so sure it's gonna flopped like Krispy Kreme but I think if -- do your homework.
When you see an IPO particularly one with a name brand product like Dunkin' Donuts because sometimes you get focused on how delicious the product is.
And not look to see where the profit margins and their growth story is Dunkin' Donuts and mature company.
Actually more of a franchise -- than -- don't want to play with and without knowing the particulars of franchise fees eccentric such I'd be very cautious jumping in on the iPod.
-- but you can't even compared Duncan to what happened with crispy cream and in the management situation at Duncan.
Plus that they are tried and true business they know how to keep their margins.
Well established and on top of it there's opportunity for growth this or not Robin in their very much concentrated in the northeast everybody California's call me up saying -- -- coming to the West Coast.
Shore and that's -- -- was at the franchise play right so if the franchisees.
Do not hold up to the standards.
Or are good business people.
That they they won't stay around as long and and the come to you think then well march unlike what's your back well I it's like you said tried and true so I would say yes they would.
But again if you're somebody looking for a franchise there's a lot of factors of which one you choose Krispy Kreme is morbid of product play.
And in this is more of a business play on on whether they'll be able to entice.
Of people the pop up the I don't know what the franchise cost is but.
The pop that up then and run the business rob why we have so many activity of things things look so bad in so many areas of the country right now but.
We -- of unemployable we have so many IPOs why right now.
Sure they're great great question so.
When you're a business and you're looking to either create -- liquidity event or raise money or or borrow money.
You look at the spectrum of what you can do you can sell your company privately you can go -- try to get a credit liner or a bank you can float bonds.
Or you could do what I PLO and when you look at the alternatives the IPO market right now is creating.
Valuations that are compelling.
The some of the debt offerings that that are available right now there's demand for it.
And it's it's it's a check the box where people -- NG this is something.
That I want to do right now to create liquidity or.
Or -- increase.
My cash capital profits off the messy place thank you very much for -- for joining us rob -- has picked by the way of any stock elect Qualcomm right.
Yes that welcomes a terrific -- que con all right thank you very privacy --
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