KRA
Kraton Performance Polymers Inc.
Industrial/Transportation, Event Driven/Special Sit
08/01/2014
Presented
| Date | 07/30/2014 |
| Price | $22.44 |
| Market Cap | $0.74B |
| Ent Value | $1.11B |
| P/E Ratio | 292.86x |
| Book Value | $13.52 |
| Div Yield | N/A |
| Shares O/S | 32.78M |
| Ave Daily Vol | 200,000 |
| Short Int | 2.31% |
Current
| Price | $46.49 |
| Market Cap | $1.47B |
| Kraton Performance Polymers, Inc. manufactures and markets styrenic block copolymers (SBCs) and other engineered polymers worldwide. The company offers highly-engineered synthetic elastomers that enhance the performance of various end use products. It also provides isoprene rubber products for use in the production of medical products, adhesives, tackifiers, paints, coatings, and photo-resistors; and isoprene rubber latex, a substitute for natural rubber latex that is used in medical, healthcare, personal care, and food contact operations. In addition, the company is involved in the development and commercialization of polyvinyl chloride alternatives for wire, cable, and medical applications; polymers and compounds for soft skin and coated fabric applications for transportation and consumer markets; membrane polymers for water filtration, heating, ventilation, air conditioning, and breathable fabrics; and synthetic cement formulations and other oilfield applications. Further, it offers core commercial grades of SBCs; un-hydrogenated SBCs, which are primarily used in paving and roofing, adhesives, and sealants and coatings, as well as footwear applications; hydrogenated SBCs, which are used in soft touch and flexible materials, personal hygiene products, medical products, automotive components, and adhesives and sealant applications; and compounds, other polymers, resins, oils, or fillers that are used in various consumer and industrial applications. Kraton Performance Polymers, Inc. markets its products through various channels, including direct sales force, marketing representatives, and distributors under the Kraton, Elexar, Giving Innovators Their Edge, NEXAR, and Cariflex brands. The company was formerly known as Polymer Holdings LLC and changed its name to Kraton Performance Polymers, Inc. in December 2009. Kraton Performance Polymers, Inc. is based in Houston, Texas. |
Publicly traded companies mentioned herein: Kraton Performance Polymers Inc. (KRA), LCY Chemical Corp (1704 TT)
Highlights
Kraton (KRA) is a global performance chemicals manufacturer that specializes in styrenic block copolymers (SBCs). SBCs are used for everything from paving/ roofing to the bottom of running shoes to healthcare equipment, and KRA is the global leader. The presenter is long shares of KRA, and in addition to liking the company’s low teens (%) unlevered FCF yield he believes the potential combination of KRA and Asia-based LCY Chemical Corp (“LCY”) would remove the rogue player (pricing-wise) in the market and generate substantial value for shareholders.
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