A few days back there was an "explanatory" post about companies contracting for future Kemet orders. However, the details of the explanation stated that the buyers could cancel if they wished, which means that the deal is a no-contract contract. And that made no sense to me, especially in view of a seller's market. After all, why would Kemet, sitting in the catbird seat I'd think, allow the buyers all the advantage. Moreover, the following quote suggests that Kemet is savvy enough to take care of itself and make sure the hedging is in their favor and not the buyer's. And if I'm wrong about this, I'd sure like to understand why Kemet is boasting about striking one-sided deals that favor the buyers.
" 'Demand for tantalum and ceramic capacitors continues to exceed industry capacity, leading to ongoing customer concerns about future capacitor shortages. These concerns are being partially met as we continue to execute and initiate long-term supply agreements that effectively commit our future capacity expansions,' said David Maguire, chairman and CEO of Kemet Corp." |
