I have nothing new on the Kemet acquisition, other than
the poison pill Kemet has apparently adopted. I did
hear that some of the shareholders have filed a lawsuit
in protest of Kemet's rejection of the takeover/merger,
but I don't know much about that.
However, I have received the following relative
to revenues and earnings estimates.
Merrill Lynch expects 96 Rev growth of 0%, earnings
growth of 17%, 97 Rev growth of 8%, earnings growth
of 15.4%. (Taken from June research report #20112308)
Bear Stearns expects 96 Rev growth of 2%, earnings
growth of 12%, 97 Rev growth of 9%, earnings growth
of 15%. (Taken from June Equity Research Rpt (unnnumbered))
I have two other reports which approximate the numbers
above, the key, in my mind, being that VSH is experiencing
a temporary flattening of sales, but that due to the
company's (successful) focus on margins, earnings can be
expected to increase at a healthy rate -- providing a basis
for an even more valuable company when business picks up
again, in 97 and beyond.
I also have info from the IR dept at VSH which shows
(page 38 and 39 of company overview packet) a very healthy
projected increase in earnings bewteen now and 1999. It is
a chart and does not have % increases spelled out, but an
eyeball of the chart looks something in the 10-15% (per year) range.
I am not sure of the date the IR packet was done. I received
it last week.
I also glanced at the consensus estimates for 96 and 97.
These are 1.87 and 2.26, respectively with high and low
for 96 of 2.05 and 1.65, respectively, and high and low
for 97 of 1.95 and 2.50, respectively.
My personal opinion is that a combined Kemet and VSH would
be a world powerhouse due to their ownership of certain
capacitor and resistor markets.
As I re-read this prior to sending it I am struck at how
much I sound like I am 'pushing' this stock. I do NOT
currently own it, and in fact, my reason for contributing
is to gain a wider point of view concerning the stock.
Again, sorry so wordy.
J |
