W) Is KEM another KREM?
Rated a WATCH
Reason for DD
Carolyn mentioned 50% gain in earnings and stock is flat
Business
KEMET tantalizes with tantalum. KEMET Corporation, headquartered in Greenville, South Carolina, is the largest manufacturer of solid tantalum capacitors and the fourth largest manufacturer of multilayer ceramic capacitors in the world. More than 80% of its sales are for circuit board-mounted versions of its products, which store, filter, and regulate electrical energy and current flow. KEMET makes specialized capacitors for use in such products as communications systems, data processing equipment, PCs, automotive systems, military equipment, and aerospace systems. KEMET sells its array of 35,000 products primarily direct to manufacturers such as Compaq, Ford, IBM, Intel, and Lucent. US customers account for 52% of KEMET's sales.
Competitors
AVX, NEC, VSH
News
13-Jun-00 11:00 -- 12:00 ET
KEMET Corp (KEM) 33 1/4 +4 1/16: Company issues upside preannouncement for Q1; sees $0.72; current EPS estimate is $0.50.
KEMET Announces Strong Expected First Quarter Results
Greenville, SC (June 13, 2000) ? KEMET Corporation (NYSE: KEM) announced today that it currently expects to exceed current First Call analysts' expectations ($0.485 per share) by at least 50%.
David E. Maguire, Chairman and CEO of KEMET, stated, "Business continues to be strong this quarter, as we expected. Our capacity remains sold out well into the future, even after taking into account our aggressive capacity expansion plans. We have also continued to see price increases throughout our product lines." KEMET plans to announce fiscal year 2001 first quarter earnings on July 24, 2000.
KEMET to Add 650 Jobs Locally
New Employees will Support Expansion of Tantalum Manufacturing
Greenville, SC (June 1, 2000) - KEMET Corporation today announced the addition of approximately 650 new jobs in its Simpsonville, Mauldin, and Greenwood, South Carolina, tantalum manufacturing facilities over the next several months. These new jobs will support scheduled production increases to help meet continued strong market demand for tantalum capacitors. They also include additional employees required for the ramp-up of KEMET's new KO-CAP (KEMET Organic Capacitor) and AP-CAP (Aluminum Polymer Capacitor) product lines in Simpsonville and Mauldin. Approximately 1000 additional employees will also be required at KEMET's manufacturing facilities in Mexico by the end of the fiscal year (March 31, 2001). "As the World Leader in tantalum capacitors, we continue to be in a situation where we can't build capacitors fast enough to supply the needs of our electronics market customers, such as Motorola, Nokia, Ford, Intel, Compaq, etc., " said KEMET President and Chief Operating Officer Charles M. Culbertson II. "This is part of a planned capacity expansion that will better enable us to support our customers' growing needs for tantalum capacitors as well as our new KO-CAP and AP-CAP capacitors." This announcement follows closely on the heels of the May 1 announcement of a 30,000-square-foot expansion and the addition of 150 jobs to KEMET's ceramic capacitor manufacturing plant in Fountain Inn, South Carolina. Other ceramic manufacturing plants in Shelby, North Carolina, and Monterrey, Mexico, will also be implementing manufacturing expansions within existing floorspace by the end of the fiscal year.
KEMET Stock Price Decline
Greenville, SC (May 24, 2000) ? KEMET Corporation (NYSE: KEM) announced today that it had been contacted by several shareholders, the news media, and the New York Stock Exchange for comment as a result of the decline in the price of its common stock as of 1:30 p.m. KEMET is not aware of any Company development that might be responsible for this decline and reiterated its strong current performance and most positive outlook for the future. Rather, KEMET believes the drop in price is market related as reflected by declines in the stock prices of its principal competitors as well.
24-Apr-00 AFTER THE CLOSE
KEMET Corp. (KEM) 62 1/2 -2 13/16: Reports Q4 earnings of $0.87 a share, $0.11 above the First Call consensus of $0.76, vs year-ago earnings of $0.06; net sales rose 80% to $258.1 mln;
14-Mar-00 AFTER THE CLOSE
KEMET Corp. (KEM) 68 1/2 -1 3/8: Manufacturer of solid tantalum and multilayer ceramic capacitors expects Q4 earnings to exceed the Wall Street mean forecast of $0.52 a share;
18-Oct-99 AFTER THE CLOSE
Kemet Corp. (KMET) 26 29/32 +1 15/32: manufacturer of solid tantalum and multilayer ceramic capacitors posts a fiscal Q2 net of $0.23 per share, seven cents ahead of the First Call mean, vs year-ago profit of $0.01;
Analysts and Others
13-Jun-00 08:42 ET
KEMET Corp. (KEM) 29 3/16 KEMET is trading up $4 in the pre-market on the strength of its announcement this morning that it expects to significantly beat the current First Call consensus estimate of $0.49 by at least 50% for the June quarter (fiscal 1Q) which will be reported July 24. KEM is the largest manufacturer of solid tantalum capacitors. Capacitors are found in virtually all electronic applications and products. Business conditions are strong and capacity remains sold out well into the future, even after taking into account KEM's aggressive capacity expansion plans and KEM is realizing price increases throughout its product lines. The shares will obviously be strong this morning and are very attractively valued. Estimates for the rest of the year are certain to be increased based on this news. So let's assume $0.74 for the June quarter and just a 20% raise for the September quarter, and no change for the December and March quarters. That would put the current fiscal year at $2.57 which would mean a p/e of just 11.4x and about the same next year assuming no increase in the consensus. These numbers are up significantly from last year's $1.70 per share, which was a record for the company. But estimates for next year and the remainder of this year surely will increase. Even before this news, estimates have been increasing significantly (over past 3 months, current year fiscal estimates are up 94% and next year's are up 72%). Impressively, KEM has beat the consensus estimate in each of the previous four quarters. To really grasp how well business has been, consider this: if KEM were to try to satisfy all the perceived demand out there today, it and all of its competitors would need to double capacities. We are very bullish on the shares of KEMET. -- Robert J. Reid, Briefing.com
Valueline gives it a 1 for timeliness. 6/9/00
25-Apr-00 10:00 -- 11:00 ET
KEMET Corp (KEM) 65 3/16 +2 11/16 : Needham & Co upgrades to STRONG BUY from BUY; ups price target to $100 from $90. Given the excellent demand and significant operating leverage, we believe there is additional upside to our EPS estimates over the next several quarters. Excellent momentum going forward. The book-to-bill for the quarter was 1.4 (and over 1.5 for the month of March), compared with 1.30 for F3Q00.
15-Mar-00 09:29 ET
KEMET Corp. (KEM) 68 1/2: One can expect that shares of this manufacturer of solid tantalum and multilayer ceramic capacitors to be bid up following last night's announcement by the company that it expects Q4 results to easily beat Wall Street expectations. According to First Call, KEMET was projected to earn $0.52, compared to year-ago profits of $0.06, and a Q3 net of $0.45. However, the strong growth in demand for its products that it experienced in the past couple of quarters remains in place and KEMET now expects earnings for the latest period to exceed expectations by 40% to 45%. In other words, KEMET expects Q4 earnings to be in the range of $0.73 to $0.75 per share on higher net sales. Already the good news has prompted Merrill Lynch to reiterated its near and long-term "buy" ratings on the stock as the issue has been on a steady up-trend since the start of the year even after the company filed to offer 5.0 mln shares of its common stock at a price of $46.00 per share late last year. Goldman Sachs has also revised earnings estimates higher, rasing its FY00 EPS forecast by 22% from $1.30 to $1.58 and its FY01 EPS estimate by 50% from $2.06 to $3.10 per share. In retrospect, the public offering that took place in mid-January, looks like a real bargain now, especially since the issue is likely to trade at a new high this morning. Given the large pick-up in industry demand for electronic components, it comes at no surprise that average selling prices are rising and prompting the company to pre-announce a better-than-expected quarter. In a feast or famine type of industry, the times are good for this capacitor supplier and the latest pre-announcement highlights how quickly fortunes can turn. - RN
Numbers
Rev 143.5M to 162.6M to 186.2M to 215.1M to 258.1M Mar00 per hoovers
EPS 0.03 to 0.06 to 0.12 to 0.23 to 0.44 Mar00 per hoovers
52-Week Low on 17-Aug-1999 $10.563
Recent Price $32.00
52-Week High on 1-May-2000 $44.219
Market Capitalization $2.74B
Shares Outstanding 85.8M
Float 60.2M
Daily Volume (3-month avg) 996.2K
Daily Volume (10-day avg) 2.69M
Price/Book (mrq*) 7.04
Price/Earnings (ttm) 38.46
Price/Sales (ttm) 3.20
Short Interest As of 8-May-2000
Shares Short 1.28M
Percent of Float 2.1%
Total Cash (mrq) $10.6M
Sales (ttm) $822.1M
EBITDA (ttm*) $123.8M
AVX numbers
Revs 318.6M to 343.2M to 371.5M to 416.4M to 499.1M Mar00
EPS 0.05 to 0.10 to 0.15 to 0.24 to 0.40 Mar00 per hoovers
15 insiders sells in 2000, most in April
52-Week Low on 30-June-1999 $12.188
Recent Price $29.625
52-Week High on 2-May-2000 $50.00
Market Capitalization $5.16B
Shares Outstanding 174.3M
Float 38.4M
Price/Book (mrq*) 5.62
Price/Earnings (ttm) 33.17
Price/Sales (ttm) 3.18
Insiders
13 insider sales in 2000 as well as eight in May00 alone
Most bothersome is this:
18-May-00 MAGUIRE, DAVID E Director, Chief Executive Officer 101,900 KEM Sold at $78.63 -- $82.00/Share.
Proceeds of $8,195,352.
17-May-00 MAGUIRE, DAVID E Director, Chief Executive Officer 121,500 KEM Sold at $77.38 -- $79.63/Share.
Proceeds of $9,560,995.
16-May-00 MAGUIRE, DAVID E Director, Chief Executive Officer 40,000 KEM Sold at $77.13 -- $77.50/Share.
Proceeds of $3,091,900.
Computer shows institution holding 200% of KEM. Sigh, don't pay for it so can't complain.
insidertrader.com
Internet Posts of Note No RB since it is locking up the puter.
I heard the First Union analyst . I agree with him. Also, Merrill Lynch's analyst, Jerry Labowitz has a 12 month price objective of $62.50 on KEM. He loves it so much, he said they almost have "a license to print money", meaning I suppose that they control the solid tantalum capacitor market for surface mounted IC's (Integrated Circuit boards).
6/18/00 on SI
KEM & CMA Screaming buys today, knocked down by option expy games, should recover nicely early next week. KEM especially blatant - a glance at the July call option prices shows no one believes todays prices will hold. KEM is off 20% in the last week, with the ONLY news being that earnings will beat analysts forecasts by a mile. 6/16/00 on SI
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. 6/15/00 on SI
The important difference between the last cycle and the present state for capacitors is the actual conditions of the market for them. What you didn't have last cycle was an extreme demand for the product that will last by all accounts for over one year. You didn't have industry organizations coming to a consensus that the shortage will very possibly extend further than anyone ever expected.
semiconductoronline.com{EEFC7329-330A -11D4-8C3D-009027DE0829}&Bucket=Chip+Price+Report.
You didn't have the presidents of the companies making public statements stating ""Keep in mind the unit demand trend line is 18% a year, and the world is egregiously short on supply because there was zero capacity increase last year and 4% the year before," says Kemet's Maguire. "So we have 2 1/2 years to make up. For the first time in history, the whole industry capacity, especially for tantalum, is below the long-term consumption trend, never mind the short-term shortage." Even by June 2001, when Kemet has finished adding 45% capacity, the industry will still not have caught up with three years of underlying demand growth of 18% a year, he says. "It will be a seller's market for at least 15 to 18 months. That does wonderful things for pricing, which will do wonderful things for margins. The market was anticipating that June 2001 was next week and prices are going to collapse tomorrow, and quite frankly, we don't agree." - Kem ceo Maguire I'll have to agree with Maceo Sloan, CEO of NCM capital management,"Investors are confused."(when picking kem as a top buy. 6/12/00 on yahoo
Higher gross margin was the biggest upside driver, followed by revenues,
which were up 20% sequentially, well ahead of our recently upwardly revised 16% forecast. All indications are that there's plenty more to come: Orders remain very strong, and the book-to-bill ratio was the strongest thus far in this upcycle. Capacitors are among the electronic
components in shortest supply currently, with suppliers struggling to add capacity and customers scrambling to find parts and essentially becoming price takers (especially the smaller customers that buy through
distribution). Predictably, we are marking up our estimates again, about 25% this time, as shown above. Our fiscal (March) 2001 estimate of $4.13 is nearly double the $2.31 estimate that we were carrying prior to the company's pre-announcement. We are now forecasting over 50% revenue
growth for fiscal 2001, but believe it or not, this has some conservatism built in. Our sequential revenue growth assumptions are lower than the rates at which KEMET expects to add capacity over the next four quarters,
and continued strength in pricing should drive revenue growth well in excess of unit growth. We are lowering our target multiple on KEMET from 30 times to 25 times in acknowledgement that valuation is back on
investors' radar screens after a several quarter absence; we have done this across the board during this earnings season. This takes our target price from $112 to $121 or about double the current trading level. At 15
times forward earnings, we regard KEMET's stock as dirt cheap, and we reiterate our BUY rating. 6/9/00on yahoo
No matter what rationale you think you have for KEM not being cyclical, IT IS! Demand has been increasing dramatically ..... TODAY! That is the point. Investors are looking further out than NOW. The issues which are yanking this sector around the past few weeks are based on WHEN that day is coming... not IF that day is coming.
The demand will always be strong, although an economic slowdown lessens it considerably. The question is how much capacity is going on line in the near term? Also, the fact that these products are not proprietary and can be copied or reproduced - in China if they choose to - for much lower costs. Investors are questioning whether p/e's should be 40 or 8 (as they have been in the past). Are earnings going to be $3/year or $1/year when margins are no longer astronomical? Personally, I believe these earnings will last through 2001, but it only matters how long the markets think it will last. Even if KEM comes back, it will be VERY vulnerable to incredible volatility for a long time.
6/9/00 on yahoo
KEM 89% owned by Institutions 6/9/00 on yahoo
Carl, the news today says that AVX was expecting to slow down the second half of 2000 - which is stated to be a misinformation (on Wall Street???? naaaaaaaah) and that had dropped VSH and KEM. 6/9/00 on SI
KEM INSIDERS: IT IS TRUE THAT the CEO, David Maguire, has filed to sell most of his holdings. It is unclear what this means, but I notice a couple of things:
1. Mr. Maguire is 64 years old. Perhaps his retirement is around the corner?
2. I see no evidence of significant insider selling apart from Mr. Maguire. 6/9/00
KEM is down because insiders have been/are selling. It'll come back once that is done 6/9/00 on yahoo
This voracious appetite from a wide range of original equipment makers (OEMs) - Ford, Motorola, Intel, and IBM, to name a few - has enabled Kemet to increase its average selling prices (ASPs). The combination of higher prices and higher volume should persist well into 2001 due to capacity constraints within the sector.
Despite its strong run-up this year (64% for the year to date), Kemet, which closed at $37.38 on tuesday, is still trading at a mere 17 times split-adjusted 2001 estimates of $2.13 (year ends March 31). Kemet earned a split-adjusted $0.85 in fiscal 2000, implying earnings growth in excess of 150%.
Considering that Kemet has beaten I/B/E/S estimates by an average 35% in each of the last four quarters, forward estimates could prove conservative.
Further upside could come from Kemet's alliance with Japanese manufacturer Showa Denko and the 30,000 feet of additional capacity at its ceramic capacitor manufacturing facility in Fountain Inn, S.C. 6/7/00 on yahoo
KEM TO PREANNOUNCE THIS WEEK!!!!!!!!!!
WOULD SEE $50-$55 6/5/00 on yahoo
AVX might be down on CFO resignation. 5/31/00 on yahoo
I spoke to Glen Spears. He said there is enough tantalum in the world to last a hundred years or more. He said there is some difficulty with refiners keeping up with demand just as there is with capacitors keeping up but there are no real supply problems. 5/26/00 on yahoo
A cry has gone up from electronics
manufacturers around the globe? ?Where are my *?#@! capacitors?? Well, unfortunately, there are only a few to go around. And when even the mighty Cisco [CSCO] cannot get its hands on an essential link in its manufacturing chain, you know there is a serious shortage. With the market weakness of the past few weeks and the abysmal stock performance of all things tech, we think Kemet [KEM] offers investors a chance to scoop up a great stock that was unfortunately associated with the other high fliers.
Kemet is the world?s leading manufacturer of tantalum capacitors and one of the largest manufacturers of capacitors in general. With the overall market downturn in 1998, the company saw gross margins slip to a mere 24.3 percent for the year 1999. As a result, Kemet, along with the other capacitor manufacturers, cut back on capital expenditures.
Then the surge in wireless handset demand prompted a ferocious rebound in capacitor demand. Unfortunately, no one anticipated the flood would drown the capacitor manufacturers, so for the past year or so, many of the small-tier players have been scrounging to find enough supplies. Now, the problems have exacerbated to reach even the large manufacturers.
In the meantime, companies such as Kemet have seen average selling prices soar as they try desperately to keep up with demand. The result: for the fiscal year 2000, which ended in March, Kemet saw gross margins rebound to 30.7 percent. For the upcoming year, margins are expected to reach as high as 37 percent, with upward revisions every quarter as Kemet obliterates earnings expectations. We think the numbers could creep into the 40 percent range for the year, a full 65 percent higher than 1999 results.
The entire industry is devoting resources to increasing capacity. However, in the real world of manufacturing, a new facility does not crop up over night. Additional capacity is expected to be in place by early 2001. Until then, the company?s only recourse is to edge up prices on capacitors, service its best customers, and revel in the rare but lucrative situation it is in. With the situation getting worse as the year goes on, we think the stock will continue to do well for the year. 5/25/00 on yahoo
This is a good test to see if you are good at holding a great stock during a bad time. Nothing has changed but the price. Also these same insiders were selling back in the teens,20's, and 30's. 5/24/00 on yahoo
Electronic Components Stocks : Group came under pressure this morning amid rumors that Merrill Lynch had cut its rating on the sector. However, rumor proved untrue, and Merrill is actually using weakness as an opportunity to reiterate its BUY ratings on the stocks, which include VSH, KEM, AVX, EPC 5/24/00 on yahoo
Spoke to IR They said:
A: They knew nothing that could explain the sinking of KEM, AVX or VSH.
B: The conference yesterday in NY did not cause the fall of the sector that they know of.
C: They had spoken with analysts earlier today (Lynch and Needham) and they knew nothing that could explain it.
D: Backlog was many many months.
E: Even if margins were cut in half, growth is 35% per year.
F: Capacity increase of 45% in next 15 months.
G: Assumed the incredible rise in the stock price was to blame. Not many places left to take profits.
H: Repeated CEO comment about doubling capacity and still not meeting demand.
What can you say? It is like being on board the Titanic. It's unsinkable. There is a jolt (what was that?). Two hours later you find yourself trying to decide whether to be a hero or dive into 45 degree water. 5/24/00 on yahoo
AVX -21%, VSH -15%, KEM -17% eom 5/23/00 on Yahoo
I just find this stock 2 days ago using stock screening at Yahoo. The stock has formed the second 'cup and handle'. The first cup was in Feb. The second one is a "double cup" , we are at the handle. The handle is accending triangle. We will be 90 in 1-2 months. Once we split next week, our trading volume will be over 1 million/day, which will attract more traders to move in. I missed VSH, I will hang on to this one. BTW, Nasdaq will have a rally in June/July, above 4000. 5/19/00 on yahoo
'Frost & Sullivan expects sales in capacitors to grow to $18 billion in 2003, up 42 % from $11.2 billion in 1999.'
' The associated price increases as supply and demand got tighter have had a great impact, Ragsdale said, Gross margins have doubled'.
'Kemet is also aiming at new markets. This year, Kemet expects to sell the first surface-mountable aluminum capacitor. It has partnered with Showa Denko KK of Japan, a leading chemical company, to market it.
Aluminum capacitors will be used widely by notebook computers, says Kemet's Maguire. Kemet expects the new product to add $35 million to revenue in 2000 and $75 million to sales in 2001.
It will give us accessibility to the aluminum market, which is twice the size of the ceramic market, Maguire said. '
5/17/00 on yahoo
According to several electronic distributors, "Most items are being added to the shortage list daily. The most SEVERE are tantalum and ceramic capacitors." Avenets co-president said on the passive component side, KEM has joined AVX and Murata in going on allocation. Most passive makers are adding capacity, yet are still unable to meet demand, according to Dick Rosen, AVX CEO. "I dont see how it is possible for us to catch up in the next 12 months," Rosen said. "Our current estimated capex for the year 2000 will exceed $250 million, most of which will be spent on capacity increases in our tantalum and MLCC capacitor lines and semiconductor lines," said Felix Zandman, chairman of Vishay. "If we were to try to satisfy all the perceived demand out there today, we and all our competitors would need to double our capacities which, of course, is not possible in the short term," said David Maguire, CEO of KEMET.This bodes very well for this component sector of the tech market. 5/5/00 on SI
Redlabrador, interestingly on the main metrics KEM is almost exactly 50% of VSH. Mkt Cap./Rev./Net Inc./shares outst. Dont know too much of the history but VSH were struggling a few years ago and perhaps it had more room to grow back. PEs are very similar, indicating that both are now valued similarily. Anyway they both seem poised to keep powering ahead. 5/5/00 on yahoo
KEM just got profiled on CNBC. The comment was they had terrific earnings and the chart showed they had moved from 60 to 90 in no time. Not quite 90 yet but terrific nevertheless. A real keeper for the foreseable future IMHO. 5/1/00 on Yahoo
I read that quote and it is clear to me, he wasnt attempting to quantify the expected sequential growth rate in revenues and earnings. Only that it would continue in an upward bound direction. It is not possible to continue with 93% sequential growth rates from quarter to quarter. You know that. In any event in this week's Barrons, there are actually earnings estimates for KEM for FYE 3/01 and 3/02. I have no idea how and who derived them (maybe someone can tell me) but I point them out only to indicate your figure above $6 is way off base. The estimate in Barrons for FYE 3/01 is $4.05 and for FYE 3/02 its $4.69 (this 15.8% rate is probably just a standardized guess and probably not meaningful at this time.) To achieve the $4.05 amount KEM's quarterly sequential growth rate would have to be 10% this year. That is an annualized growth rate of 46%, which as far as I am concerned is terrific. If KEM then trades at a PE ratio of 28 to 1 (my figure) the price per share in one year should be $113. With a split along the way, that could accelerate. Tell me what you think. 4/30/00 on yahoo
Here is a comparison of 1st qtr earnings and EPS between KEM and VSH. KEM is the market leader in tantalum capacitors. VSH also has a higher margin (47% 1st qtr) active component business, that is why it is not the best comparison. Without that margin effect, KEM's manufacturing operations actually appear more efficient although KEM does not include depreciation in COGS so we are not exactly comparing apples to apples. Both companies are clicking on all cylinders right now and will be big winners for the next yr at least. 4/27/00 on yahoo
AVX is a bigger company, has more sales, and makes more money. KEM is smaller, has less sales, and makes less money. I'm not talking about EPS, but overall dollars. AVS is rated higher by IBD. It (AVX) has an accumulation/distribution rating of 'A' versus 'D' for KEM. This last fact actually worries me. Todays volume was good, but I want to see more funds buying KEM to feel good about reaching new highs. 4/25/00 on Yahoo
Long time holder of KEM. Think the stock should be easily >80. Do you think that the fact that it's on the NYSE instead of the NAZ hurts its exposure? It's the only reason I can think of why it isn't >80 right now. Although, I think it will get there by next week. 4/25/00 on yahoo
ML report out today Have you seen it? They projected a 12 month doubling in price (to 125). It is very rosy. Hope all the shorts go down the drain on this one. 4/25/00 on yahoo
Charts
Ugly, moving sideways. 10 day EMA below 50 day EMA.
Links
kemet.com
Summary
So much FUD on this stock. Company is cyclical so debate on cycle peak hurting this AVX and VSH. Semi sector also affected. Only 20% off its all time high. Chart bothers me on this along with insider selling. Downside short term is $25 and up side is $40. This makes it a 50/50 risk/reward so rated a WATCH. Preannouncement was expected as AVX preannounced earlier. Company does not have a lock on a technological innovation so shortage will increase margins short term. Long term, some one cheaper make come up.
A buy at $25-27.
Jack |
