Buy Goldman Sachs (GS)

Plain and simple, there is no way that Goldman Sachs should only be trading at 1.25 times its book value.

Goldman's share price has been suppressed ever since it got in trouble all the shady investment vehicles it was selling, but I believe that none of that will effect Goldman's future business operations.

Some positives about GS:

• 800 billion dollars in cash vs. only 400 billion in debt.  (Google only has 30 billion dollars in cash just to give you a perspective).
• Profit margin of over 25%
• Name Brand
• The most talented financial minds in the world want to work for Goldman Sachs (especially from my generation)

If you think Goldman's reputation is still shaky, consider that just today Goldman was rated the #1 place to work on Wall Street.

Michael R Caligiuri owns shares of Goldman Sachs stock

Krispy Kreme Doughnuts (KKD)

Sell

Despite the better than expected profit and the 18% share price increase, I reccomend for investors to sell their stock in KKD.  Might as well take the awesome 18% price jump and sell.

Reason's I think this is not a good company to invest in:

• Revenue has decreased every year.  How is a company that sells doghnuts supposed to grow if it can't increase revenue?
• Profit margins are small.  the profit margin is 1.37%.  If the economy takes another turn, KKD is going to be very squeezed to make a profit.
• It is already selling for over 5X book value.  I'm not quite sure what KKD has done to warrant such a high market price.
• Most importantly, there are better companies to invest in like my previous recs on my Motley Fool CAPS blog including  VPRT, PNRA, and GS