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

To: fred woodall who wrote (268)	7/25/2000 4:35:26 PM
From: SJS	Respond to of 906

I don't think you'd get a disagreement from anyone here. Other companies hem and haw, make excuses, cover their tracks and WS forgives, and the stocks go up even after marginal earnings reports and guidance. This company is raising prices, establishing a long-term contract posture with their customers to balance supply and demand cycles, smoked/croaked/nuked their earnings estimates even after a raise and even higher hints, and is giving trouble-free future guidance into H2. Pass the tequila.....hold the salt. I'll take mine straight up.

To: fred woodall who wrote (268)	7/25/2000 4:41:25 PM
From: techtonicbull	Read Replies (1) \| Respond to of 906

There's a reason for the poor performance of KEM today. There is a perception that some cataclysmic downturn will strike at the heart of Kemet's operations leaving them with dried up order streams and having to pay enormous sums for capital equipment. Erroneous because every analyst and her brother is saying the company can do no wrong. So what's an investor to do? What else? Buy more! The vindication will come when there is a realization that 7X earnings is not the proper stock multiple for the group. They are not tech's but should trade more like in the 35X earnings range. Now, if they are picked by Merrill Lynch to earn $3.75 this year and $4.25 next year and they are given a PE multiple of 35, that would yield a stock price of $131.25 by 2001 and $148.75 by 2002. Sounds reasonable to me!