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

To: techtonicbull who wrote (354)	7/28/2000 12:52:11 AM
From: Techplayer	Respond to of 906

techtonicbull, the only thing that strikes me about 31.5 is the recent bounce off of 32 and change. tp

To: techtonicbull who wrote (354)	7/28/2000 1:49:55 AM
From: Paul Senior	Respond to of 906

re: 31.5. One explanation for you here: Mr. Frank believes KEM will earn roughly $4. sh. (which I deduce from his report that KEM is selling at 6x earnings (based on a KEM's closing price of $24 (roughly)). He buys stocks at prices 1/2 of what he/his people believe is full fair value given a long-term, multi-year holding. That is how he operates. In other words for KEM, at this point, Mr. Frank believes KEM is worth $63/sh and is likely to sell at that price sometime in the next several years, so he is willing to buy KEM now at 1/2 that or 31.50 (or less). He will adjust the worth (and hence price he would recommend purchase) up or down depending on new earnings announcements, sales growth, etc. -gg- Maybe it's just happenstance, but IF KEM's earnings are to be $4/sh and IF KEM were to sell at $63/sh, then KEM's price/earnings multiple would be close to my guesstimate of a reasonable top p/e of 15. But maybe we better not go there (p/e discussion) if we are to preserve peace on the thread -gg-. Paul S.