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

To: Czechsinthemail who wrote (405)	8/1/2000 8:31:36 AM
From: techtonicbull	Read Replies (1) \| Respond to of 906

The demand picture is clear. The price of the stock will have to acknowledge this demand. I like what David Maguire said about lengthening the agreements.. I feel that this anuitization of the agreements will be the most significant feature to change the image of the industry as cyclical. I feel that they are actually guaranteeing themselves a steady earning stream instead of a boom or bust type of earnings picture that was characteristic of the past. I am not naive to believe that the passive component industry is not basically a cyclical one. All efforts to reduce cyclicality will help the bottom line going forward. That's going to positively impact the stock price. I have said that the stock is close to being "oversold". There is just no more major sellers out there IMHO. When this happens, I believe that we will see short covering and a rapid upward movement in the stock price. The movement of the stock really is going to depend of the Fed. and the forward looking economic numbers. Potential buyers of KEM want to feel secure that the future looks bright so that the large investment that is made in new plants are not wasted. Personal income spending is stronger than expected, so who knows the markets might not like it. I am sticking with KEM for the long term.

To: Czechsinthemail who wrote (405)	8/1/2000 12:51:39 PM
From: Ron Harvey	Read Replies (3) \| Respond to of 906

A few days back there was an "explanatory" post about companies contracting for future Kemet orders. However, the details of the explanation stated that the buyers could cancel if they wished, which means that the deal is a no-contract contract. And that made no sense to me, especially in view of a seller's market. After all, why would Kemet, sitting in the catbird seat I'd think, allow the buyers all the advantage. Moreover, the following quote suggests that Kemet is savvy enough to take care of itself and make sure the hedging is in their favor and not the buyer's. And if I'm wrong about this, I'd sure like to understand why Kemet is boasting about striking one-sided deals that favor the buyers. " 'Demand for tantalum and ceramic capacitors continues to exceed industry capacity, leading to ongoing customer concerns about future capacitor shortages. These concerns are being partially met as we continue to execute and initiate long-term supply agreements that effectively commit our future capacity expansions,' said David Maguire, chairman and CEO of Kemet Corp."