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

To: SJS who wrote (255)	7/25/2000 11:37:33 AM
From: James Calladine	Read Replies (1) \| Respond to of 906

SOME PRESS: Here is some press. Why are we down today? Fake close yesterday--as most other days recently. Where are the upgrades?? We won't see I think until every loose share has been shaken out. Then the whole industry in which KEM is going to be wonderful. STRONG BUY! But not today, I guess. <<<Market Pulse Tuesday, July 25, 2000 Kemet oversold? --11:03 am - By Michael Baron Kemet Corp. (KEM: news, msgs) is off 2 3/4, or 9.2 percent, to 53. The Greenville, S.C., firm reported second-quarter earnings of $80.2 million, or 90 cents a share, up from last year's profit of $4.7 million, or 6 cents a share, and ahead of First Call's average estimate of 74 cents a share. Sales rose $329.2 million in the latest three months from $162.6 million in the same period a year earlier. The company attributed the strong results to burgeoning demand for its tantalum and ceramic capacitator products. Ted Kundtz, an analyst with Needham & Co., was surprised by the weakness in the stock price Tuesday morning. "It's totally puzzling," he said. "We don't understand selling on the heels of 90 percent earnings growth." Kundtz, who rates Kemet a "strong buy" with a $50 price target, theorized the downward pressure may be related to fears that a slowing in the economy could leave the company with excess capacity in a falling price environment. "Maybe the bearish concerns are that Kemet won't be able to keep up this pace in a recession," he said. "But we already have a slowdown in this phenomonal growth factored into estimates and we see no evidence that a recession is imminent." Kundtz added that Kemet was by no means overvalued prior to the earnings report. "They are trading at roughly seven times fiscal 2000 earnings now and even if the stock hit our price target, the multiple would only be 12 to 13 times fiscal 2001 earnings estimates," he said. >>>> Best wishes, Jim

To: SJS who wrote (255)	7/25/2000 11:44:39 AM
From: The Ox	Read Replies (1) \| Respond to of 906

At 26.75 the stock has: Trailing p/e of 15.8 on last 4 quarters earnings. Compared to the previous 4 quarters earnings, earnings growth rate is now 333% year over year. Guidance was for about 22% year over year earnings growth with $2.86 in earnings this year and $3.49 for next year, this was before they blew out the quarter. Using 13(pe-traditional growth rate) x 2.86 = $37 stock target. 13 x 3.49 = $45 target on forward earnings. conservative high end valuation 22 x 2.86 = $63 target. Patience with this company will be rewarded, IMO. Michael