Wednesday, March 2, 2011

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

(May 16, 2011 update: All future stock posts will appear on my new subscription-only website at Please visit!)

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.

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The Right Huff is Crista Huff's blog for politics and items of sociological or financial interest. Crista Huff also managesGoodfellow LLC, 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.

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