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Best bargain of the day on an up market? KRA at $40 with a .85 eps qtr on the way.

|Includes:DOW, EMN, KOP, Kraton Performance Polymers, Inc. (KRA), PPO

This morning (NYSE:KRA) Kraton Performance Polymers Inc. bids & asks are showing that it will open down at least -$1/shr to around $40 from a close yesterday of $41.17.

This is because of a 6M share offering by existing shareholders, but the overall share count of (KRA) will not change. This is not unusual as big Institutions can not enter or sell without causing the stock to make a massive move one way or the other due to its small float. Thus you have a share offering an orderly way to exchange shares between Institutions.

(KRA) selling shareholders will have no trouble getting their shares gobbled up by other Institutions because its eps is growing and growing rapidly. Just recently (KRA) announced a price increase : Kraton Performance Polymers announces Asia Pacific SBS and SIS price increases of $200/t effective April 1,2011

Its eps estimate for the current qtr was recently raised from .65 to .85 so the shares path to least resistance is currently to the upside.

In my opinion using any weakness this morning to either add or start a new position will reward you pretty quickly. In 2010 (KRA) introduced an innovative technology called Nexar Polymers.




Disclosure: I am long KRA.

Stocks: KRA, PPO, DOW, EMN, KOP