Add KEM to watch list. Conservative target $53.
Bouncing off the 20 day EMA. Sell signal now on the daily, but possible OBV break out on the 60 minute chart. Stock is consolidating and could break up or down.
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Thursday September 7, 11:38 pm Eastern Time
Kemet succeeding in capacitor market - Business Week
NEW YORK, Sept 7 (Reuters) - Shares of Kemet Corp (NYSE:KEM - news), a leading maker of electrical parts specializing in small capacitors used in cell phones and computers, could jump more than 50 percent in a year, according to an investment manager in Business Week's Inside Wall Street column.
According to the magazine's September 18 edition, Scott Black, the president of Delphi Management, said as electronic gadgets become smaller, quicker and more complex, Kemet is destined to shine.
Kemet makes the two most popular types of tiny capacitors, solid tantalum capacitors, where it is No. 1, and multilayer ceramic capacitors, where it takes second place, Business Week said. Both types are used for storage and filtration and to regulate electricity and current flow, it said.
Black has been buying Kemet shares and said the company's ``business is exploding, with revenues and earnings at record levels,'' according to Business Week.
The Greenville, S.C.-based company's shares closed up $1-1/4
at $30-3/4 on Thursday, between a 52-week low of $16-1/8 and a 52-week high of $44.
Kemet expects the stock to hit $50 in a year, the magazine said.
While the industry was hit during the Asian crisis two years ago, demand rebounded in late 1999, bringing firmer prices and solid earnings results, Business Week said.
According to the magazine, Kemet supplies such technology mainstays as Intel Corp. (NasdaqNM:INTC - news), International Business Machines Corp. (NYSE:IBM - news), Motorola Inc. (NYSE:MOT - news) and Texas Instruments Inc. (NYSE:TXN - news). Business Week also said that Citigroup Inc. (NYSE:C - news) and Fidelity are among its top stakeholders.
In its fiscal 2000 year ended on March 31, Kemet posted earnings of 85 cents per share on revenues of $822 million, the magazine said. Black, according to Business Week, expects it to post earnings of $3.85 per share on revenues of $1.2 billion this year, and earnings of $4.40 per share on $1.6 billion in revenues in 2002.
T.W. Smith, an analyst with Standard & Poor's, expects revenues to climb in fiscal 2001 as well, Business Week said. |
