Thinly traded stock. Average daily trading volume is below 250k shares. I see this as a $9 stock and took a gamble and shorted it into Q3 earnings. I say "gamble" because thinly traded stocks are all too easily manipulated by MMs. No MMs appeared to dump KNL last week after the ER, although a lot of small trades briefly pulled KNL below $10.

I think the market may pull back on Q3 earnings in general and KNL will suffer as well. I am bullish on the market but I think 10,000 was hit too quickly and expectations are too high for Q3. GE, BAC and IBM already pulled back after their Q3 ERs. Of course others like GOOG jumped up after their ER. However, I think disappointments will outnumber positive surprises this quarter and pull the Dow down.

Don't forget about that shelf registration KNL filed in August! I suspect management is on the prowl for an acquisition. The time for management to acquire is when the stock is trading so high. I also suspect if management does announce an acquisition and dilutes the stock, the stock will inevitably take a hit.