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

To: techtonicbull who wrote (626)	9/4/2000 4:41:26 PM
From: WTMHouston	Read Replies (3) \| Respond to of 906

How about those of you that think that KEM is out there buying any stock, much less buying stock daily, call IR and ask them. Better yet, how about you call the CEO and ask him. Even better yet, how about pointing to any SEC filing that evidences it. Until you have any evidence that what Ron said is either wrong or inaccurate, which I do not believe it to be, calling him on it is pretty lame. Prophet: your allegation that Ron is a liar is WAY out of line. If that is all you have to contribute, then you have nothing meaningful to contribute, IMO. As far as "reporting" him to IR, surely you jest. What are they; his master? What are they going to do; sick the KEM boogey man police on him? Geez...get real. Even though I have not talked to IR or the CEO, I agree completely with Ron. Moreover, his report of IR's comments not only makes sense, it is also consistent with my view of KEM's buy back program. Until there is some actual evidence that KEM has bought anything, and there is none, I will continue to be of the opinion that they have bought very little, if anything. Even at the current price, which I agree is undervalued, KEM's money is better spent (from a shareholder value standpoint) on capacity increases and not share buy backs. KEM's value will not increase by the appreciation in the value of any stock it buys; the shareholder value increase comes only from earnings being divided among a smaller block of shares. 4M shares is less than 5% of the outstanding shares. Thus, the maximum gain to shareholders from the buyback is a one-time 5% gain in eps, assuming they bought back the entire 4M. The only way this makes sense is if you do not think that KEM can earn at least 5% on its invested capital. Frankly, I think they can, which is why it makes MUCH more sense to invest there money in capacity expansion and not share buy backs. The KEM buy back announcement was nothing more than a public statement that it will support the share price. It was not an announcement that they were going to run out and immediately buy back 4M shares. It was not even an announcement that they were even going to actually buy back 4M shares. It was just that the BOD gave authorization to do so, if and when they chose to do so. Troy