KEM ~ Book to bill?! Ron, I spoke with CFO Ray Cash. (how's that for a name?) Kemet doesn't publish a b2b because they only create an order upon the creation of an invoice at shipping to one of their 35 long-term customers. Other misc. business to restock distributor inventories are turning faster than ever.
All the capacity which Kemet is presently installing is already committed. Demand is firm, and they do NOT manufacture for in-house inventory. May was best month EVER, and days of customers expecting quarterly price reductions, as in past, have not been a part of their industry for more than a year.
The CFO admits hearing rumors last 3-4 weeks that the capacity which industry has been installing will lead to excess supply, but disagrees, attributing that suggestion to short interest promoters. The demand picture is NOT changing.
He suggests doubters examine the recent Semiconductor Book to Bill results, (1.30 actual vs. 1.31 to 1.32 estimate, if I recall correctly), and then consider the question:
'HOW are industries going to USE all these semiconductors without PASSIVE COMPONANTS (capacitors)??
NOTE: Earnings due Mon. July 24th. (Would only venture that IF eps will be a surprise, it will be to the upside.)
Being a Southerner too, I assured him we have an unpleasant carload of ugly rednecks ready to swoop over to South Carolina if this info proves to be a snow job... IF one of these vehicles will crank... (Sorry, OJ, this is a regional deal! We don't need no Philly Nightrider, thanks?!...)
Rick
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