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

To: Rarebird who wrote (498)	8/10/2000 7:31:46 PM
From: The Ox	Read Replies (1) \| Respond to of 906

Expansion plans target expected demand. As these plans are put into action, if demand starts to decrease dramatically, the expansion plans to some extent can be delayed or discontinued. While there is a chance that the company could be looking into the future with rose colored glasses, it appears that they have done their homework. One of the risks you take if you decide to invest in KEM is that the economy runs straight into a recession from here. New facilities take time to perfect and it's very possible that margins will be temporarily 'soft' during the initial startup. Once these growing pains are solved, one should expect improving margins going forward, assuming demand stays strong (I know, a big assumption!). My research suggests that while a recession is possible, it's not probable unless the FED continues to tighten going forward. A FED funds rate that moves to 7% or higher has most often caused the economy to head into a recession. If the FED tightens again....it will be very tough on the stock market (in general) and on KEM's future stock price. Just my opinion, Michael