Trade-Ideas LLC identified

Kraton Performance Polymers

(

KRA

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Kraton Performance Polymers as such a stock due to the following factors:

  • KRA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
  • KRA has traded 194,338 shares today.
  • KRA is up 3.2% today.
  • KRA was down 6.2% yesterday.

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More details on KRA:

Kraton Performance Polymers, Inc. produces and sells styrenic block copolymers (SBCs) and other engineered polymers in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. KRA has a PE ratio of 11. Currently there is 1 analyst that rates Kraton Performance Polymers a buy, 1 analyst rates it a sell, and 1 rates it a hold.

The average volume for Kraton Performance Polymers has been 489,500 shares per day over the past 30 days. Kraton Performance Polymers has a market cap of $913.2 million and is part of the basic materials sector and chemicals industry. The stock has a beta of 1.00 and a short float of 9.8% with 4.96 days to cover. Shares are up 67.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Kraton Performance Polymers as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, compelling growth in net income and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:

  • KRA's very impressive revenue growth greatly exceeded the industry average of 5.7%. Since the same quarter one year prior, revenues leaped by 60.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 1046.66% and other important driving factors, this stock has surged by 31.73% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KRA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Chemicals industry. The net income increased by 1031.5% when compared to the same quarter one year prior, rising from -$9.46 million to $88.09 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Chemicals industry and the overall market on the basis of return on equity, KRATON PERFORMANCE POLYMERS has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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