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Heinz, I think we are at the top of the cycle here. I came across a company named Kemet today, symbol KEM ( NYSE). The company preannounced a couple of days ago that earnings this quarter would beat street estimates by at least 50%! So, I was wondering why the stock fell over 10% today. I read all the news on the stock over the past 3 months. I studied its balance sheet, which looked good. I even listened to a 20 minute interview with the CEO, David Mcquire, on Radio Wall Street, which was given on June 13, where the CEO said that in his 40+ years at Kemet, business has never been better. They are adding an additional 45% of capacity for their capacitors and business is so great that they can not even take on any more customers till late 2001. Earnings have been so great in part because KEM has been able to raise prices dramatically. I saw the next Puma in front of my eyes. Then I looked at the Insider activity on Yahoo and saw the most massive Insider Selling I've ever seen in my life over the past month with CEO David Mcquire leading the way with humongous sell orders. Go to Yahoo and check out the news, option activity, and that online interview with Mcquire. He almost had me fooled. Then check out the Insider activity on Yahoo. Unbelievable. I could use certain words to describe what I think is going on here, but I have a wife and 3 sons and I don't want to risk getting arrested. |
