Ron this is excellent news which if found out by the large money managers and GARP players will cause a momentum play in KEM. It has been a curious lack of commitment in KEM due to so very real fears that capacity slowdown due to a business environment with hostile credit rates will hamper growth. Or even worse, cause KEM to over-spend on expansion and then get caught "flat footed" with the demand drying up.
As you and I know this will not be happening. What's even more assuring is analysts, like Jerry Labowitz of Merrill Lynch, have pronounced these fears as "poppycock". Jerry has pounded the table that this is a great buying opportunity. As you know he has placed a 12 month price objective of $62.50 per share. Jerry has said that in his opinion this share price is conservative.
If we get the green light from the FED on Tuesday, August 22, 2000, I believe that we will see significant price appreciation.
Frankly, I have been puzzled at the lack of interest in KEM over June and July. As you know, for two months the stock has stagnated and been sold off despite phenomenal news reports.
With a little luck, the FED will be through raising interest rates and we will get only a slight moderation in business output.
Knowing what I know and reading your excellent link, I believe that the downside risk is nil, and the upside potential is great.
I am off tomorrow for my week cruise. I will take a vacation from the market. I wish you and all the other KEM longs good luck.
Cheers!! |
