Gambling for Monday: KKD & WM

Krispy Kreme Doughnuts (NYSE:KKD) shares are down 91% since late 2003 and Washington Mutual, Inc. (NYSE:WM) is trading at a 13 year low.  Get ready to gamble come Monday, both of these stocks could either continue to fall or bounce like 64' Impala tricked out with hydraulics.  Let it ride.

Krispy Kreme reports financial results for the first quarter of fiscal year 2009 after the market close.  There's not an investor or analyst alive that expects anything good, so should they have something, just anything, shares could hit the 3 wheel motion.

Wall Street could care less about KKD, the last time a analyst paid attention to them was this time last year, since then, nothing.  Check out the target prices set last summer, these guys wouldn't touch Krispy with a ten foot pole now:

Then there's WaMu, their stock is down 80% over the past year and has a short position of 18% of the float. Should WaMu have anything good to report this week, the stock will bounce.  Financials are doomed, no doubt about it, but until they close their doors, WM is still alive.

This week Washington Mutual (NYSE: WM) CEO Kerry Killinger was stripped of his chairmanship, and Wachovia (NYSE: WB) CEO Ken Thompson was outright fired. The dismissals continue an executive shakeup at large financial companies in response to the subprime crisis, and put Killinger and Thompson in the company of other axed CEOs, including Merrill Lynch's (NYSE: MER) Stanley O'Neal and Citigroup's (NYSE: C) Chuck Prince. The shakeups continue because these executives, while gorging themselves on easy subprime profits, crippled their companies and ruined the economy. The problem is that chairmen and CEOs have so much power that it's difficult to blame others when things fall apart. Don't feel too bad, though. They can ponder the world's inability to appreciate their magnificence while living on obscene fortunes they don't deserve.

So if WaMu could be an Impala, it would look like this beat up 64' shown here, it's exactly how Wall Street views its future.  WM is the beat 64' in the junk yard, restored it could be a beautiful ride, but for now, its just trash.

Recent WM analyst take: