Stock Idea: Kraton Performance Polymers, Inc. (KRA, $34.53)

(Originally published on March 2, 2011 at

Kraton Performance Polymers, Inc. (KRA)

Kraton produces copolymers and manufactures products for diapers, razor blades, surgical gloves, latex gloves, toothbrushes, power tools and asphalt. The company sells over 800 products in 60 countries worldwide.

This is a small-cap stock without a dividend, and should therefore pose more inherent risk than a stock like General Electric. Consensus earnings per share (eps) are projected to grow 9.2% and 12.4% in fiscal years 2011 and 2012. The PE is 9.7 based on projected 2011 eps.

The stock recently traded in the $30-$33.50 range, and is just now breaking out and reaching now highs. I would be a buyer at the current price, and use stop-loss orders to protect my principal while the stock rose.

* * * *

Investment Disclaimer
Release of Liability: Through use of this website viewing or using you agree to hold and its employees harmless and to completely release and its employees from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur.
Goodfellow LLC and its employees are not paid by third parties to promote nor disparage any investment. Recommendations are based on hypothetical situations of what we would do, not advice on what you should do.
Neither Goodfellow LLC nor its employees are licensed investment advisors, tax advisors, nor attorneys. Consult with a licensed investment advisor and a tax advisor to determine the suitability of any investment.
The information provided herein is obtained from sources believed to be reliable but is not guaranteed as to accuracy or completeness. When information is provided herein from third parties — such as financial news outlets, financial websites, investment firms, or any other source of financial information – the reliability or completeness of such financial information cannot be guaranteed.
The information contained on this website is provided for informational purposes only and contains no investment advice or recommendations to buy or sell any specific securities. This is not an offer or solicitation for any particular trading strategy, or confirmation of any transaction. Statements made on the website are based on the authors’ opinions and based on information available at the time this page was published. The creators are not liable for any errors, omissions or misstatements. Any performance data quoted represents past performance and past performance is not a guarantee of future results. Investments always have a degree of risk, including the potential risk of the loss of the investor’s entire principal. There is no guarantee against any loss.
* * * *
Goodfellow LLC is a subscription-only stock market website. We strive to identify financially healthy companies in which traders and investors can buy shares and earn dividends and capital gains. See disclaimer for the risks associated with investing in the stock market. See your tax advisor for the tax consequences of investing. See your estate planning attorney to clarify beneficiary and inheritance issues associated with your assets.


Leave a Reply

Your email address will not be published. Required fields are marked *