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Technology Stocks : KEMET Corp.
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To: Blue Voodoo who wrote (165)7/14/2000 9:47:16 PM
From: techtonicbull  Read Replies (1) of 906
 
Building more fabs to be let down later if the market for capacitors softens, always is a potential problem. However, KEM has two solutions:

1) long-term contracts to preferred customers that sign these long contracts to eliminate cyclicality, and

2) B to B supply chain Internet procurement and fulfillment which will supply "JIT" (Just-in-time) manufacture and supply to purchasers of capacitors.

The fact is, that KEM is adding capacity incrementally so that they do not flood the market. Plus, the B to B Internet connection that KEM uses helps to quantify demand much better than ever. So, companies that OEM IC's as well as KEM do not have to carry unnecessary inventories.

Bye Bye Boom or Bust!
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