Daniel Gross has an amusing piece on companies, most recently Krispy Kreme, blaming the popularity of low carb diets on their declining stock prices. He makes a convincing case that other factors are the more likely culprits and concludes with some reasonable advice:
The question for investors in Krispy Kreme—and in other companies who have staked their future on high-carb products—is whether Atkins exerts a lasting influence on consumption patterns. I’m guessing it won’t. After all, for all the time and money we spend on diets and diet products, we Americans are getting fatter every year. As you’re lying on your couch shoveling snacks into your mouth, you should have plenty of time to think about the companies you want to invest in. Remember: Don’t worry about the fads, worry about the financials.
