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

To: Ron Harvey who wrote (416)	8/1/2000 1:18:59 PM
From: SJS	Respond to of 906

Those old enough to remember Whimpy (part of the Popeye character set...) might be reminded of what he used to always say: "I'd glady pay you Tuesday for a hamburger today". McQuire spin on that slogan is: "I'd glady take your money today, for a capacitor on Tuesday".

To: Ron Harvey who wrote (416)	8/1/2000 1:46:49 PM
From: techtonicbull	Respond to of 906

Kemet.com Annual Report Page 28 Note 10 "Committments" states that the Company allows for returns of inventory. I don't like to hear that. It does state however that price reductions by the Company will not be applied to shipped stock. This implies that price increases are not reflected in ordered but not shipped stock. What do you make of these clauses? I think they have some weak contracts.

To: Ron Harvey who wrote (416)	8/1/2000 1:50:47 PM
From: Paul Senior	Read Replies (3) \| Respond to of 906

Ron Harvey: I believe (but I'm no purchasing expert) that these type long-term deals are common in the components business for components where there's a shortage. I look at it this way. No buyer would want to commit to both a high price and a high fixed volume for a component that could, in future, be in surplus. Commitments to a price (high future price) assure KEM that KEM will get top dollar for their caps even if the spot price is much lower. And for the buyer, they have to pay this 'top dollar' but if they don't need so much of the product, they don't need to take it. (The contract likely - imo and without having any facts- entails a minimum quantity that that the buyer must take.) They - the buyers - aren't happy they have to pay more than the then current price - but that is the cost of assuring themselves now future delivery. This assumes the future demand is down from when the contract was entered into and also the capacitor price is down too. Of course, if industry demand and prices are up and the contract buyer takes all of the caps allowed by the contract, the buyer makes out great, the KEM purchasing agent sighs and says to himself/herself I shouda been tougher, but --- IMHO --- if we are in that situation - demand high & prices high - the stock price of KEM will be lots higher than now too. I will like that (assuming I can hold on until then). Paul Senior