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To: briskit who wrote (105538)	7/5/2000 6:25:53 AM
From: puborectalis	Respond to of 120523

KEM comments from yahoo thread........Capacitor pricing & what it means... by: longterminvestor15 (42/M/San Jose,CA) 7/4/00 10:05 pm Msg: 4650 of 4661 There has been a lot of discussion on this board about capacitor pricing. As someone who has worked in the electronic component industry for many years, I thought I could shed some light. There has been NO price drops from the big three. This is even as new capacity has come on-line. The last series of price INCREASES occured in late April. Pricing has remained stable for both tantalum & ceramic caps. I see pricing holding firm and perhaps even increasing late in the third quarter. The increase in capacity has made it somewhat easier (but only a little)for third tier customers to get caps from franchised distributors. This has caused pricing on the black market to decrease dramatically. This is what we see reported by some posters. Black market pricing has no impact on the margins and revenues of cap manufacturers. Demand for caps is strong and will only get stronger as we move into the 4th quarter. The demand for caps from cell phone manufacturers, electronic manufacturers (Jabil, Flextronics,) server & PC manufacturers, consumer electronics, and auto electronics is growing at an annualized rate of close to 35%. Demand will continue to outpace supply! This will occur even with the 45-50% increase announced by VSH, KEM, and AVX for the 18 month period from January 2000 to mid summer 2001. Hope this helps. I see positive statments coming from KEM, VSH, and AVX about their future prospects.(If current business conditions had changed, they would have to let us know). The green light is still green. I added to my Kemet position late last week. I believe AVX reports on July 14. Good luck to all.