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Technology Stocks : KEMET Corp. -- Ignore unavailable to you. Want to Upgrade?

To: techtonicbull who wrote (210)	7/21/2000 7:28:22 PM
From: SJS	Read Replies (3) \| Respond to of 906

Tech, Another Bizarre close for KEM. Struggles all day under 27 and then closes at 28, allowing the 27.5 call writers to technically be called. This is totally bogus. That's 1.25 points above the last trade I show. This is getting too commonplace and permissible to allow 100 shares to "markup" the stock.

To: techtonicbull who wrote (210)	7/22/2000 12:03:37 AM
From: Czechsinthemail	Respond to of 906

Good article. It pretty much sums up the capacitor shortage story. People are so obsessed with cap companies overbuilding supply that they lose sight of two things: 1) The enormous amount of money these companies are making 2) The concern the companies have around overbuilding. I think the result is a more controlled increase of capacity -- increasing capacity, but trying to stay in touch with the market so as not to overbuild. It is tough to find the line between not enough and too much. And part of the difficulty has been the difficulty in anticipating how many ways the demand for capacitors would grow or how persistent the growing demand would be. So long as the shortages persist, there will be big increases in profits. KEM and the others are trying to smooth out the cycle through long term contracts. How successful they will be remains to be seen. For now, the cap companies are not able to increase production fast enough to meet the shortages, and none of them sees an early end to the shortage. One problem in trying to forecast cycles is that you can be as wrong being early in predicting a downturn as you are being late. From all I can tell, the cap companies will have an amazing run before this is over, and they'll make an incredible amount of money along the way.