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

To: Jack Hartmann who wrote (730)	10/15/2000 12:49:14 PM
From: techtonicbull	Read Replies (1) \| Respond to of 906

Jack: I suppose that KEM and AVX are in such similar capacitor product lines that the summary that you made for AVX will apply for KEM as well. As you know the consensus earnings number is $0.94 and the whisper number in $1.06. So there is this expectation of another "blowout" earnings report. There is a major difference in that KEM is larger in tantalums. How this will reflect on the street's reaction to the earnings is unknown. The cyclical feature of this industry will always be viewed as an impediment to PE ratios however, there will be a confirmation of sorts when quarter after quarter good results get reported. I also like the AVX report of the companies that use capacitors and the future technologies that are going to use capacitors. I like the term "cement" in IC's and I believe that this will be more and more true in the future. One has to remember that technology has been under a great deal of pressure as of late and compounded to this is the fact that September and especially October have been very poor months for the market due to the earnings pre-announcements. I hope that the October 23rd that KEM does justice to the whisperers.

To: Jack Hartmann who wrote (730)	10/15/2000 1:49:04 PM
From: Paul Senior	Respond to of 906

Jack: Thanks for posting those very encouraging AVX comments! eom.

To: Jack Hartmann who wrote (730)	10/15/2000 2:56:14 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 906

Jack, Thanks for posting the AVX comments. The major holder of AVX is Kyocera, a relationship that contributes to their strength in ceramic capacitors. Another difference is that AVX pays a dividend. That makes it available to certain institutions that invest only in dividend-paying stocks. KEM's strategy seems to be directed toward repurchasing shares instead of paying a cash dividend. Increasing free cash flow at the capacitor companies is clearly a big positive, particularly if we go into a time of more limited capital availability.