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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: KevRupert who wrote (12005)	2/13/2001 10:55:07 PM
From: TimbaBear	Respond to of 78515

I did a NetNet valuation on KEM the other day. It has a NetNet value, by my calculations of about $3.40/share. So from a strict Graham-type margin of safety viewpoint, it doesn't provide nearly the same cushion at current levels as a NetNet would. I like the fact that, for the 6 month period of the filing, it has nicely positive CFO and FCF. Other than the above and the fact that their filing looked pretty straight-forward, I haven't formed an investment opinion on it. Timba

To: KevRupert who wrote (12005)	2/13/2001 11:19:45 PM
From: Mark Adams	Read Replies (2) \| Respond to of 78515

I like KEM, VSH and AVX. I wouldn't chase them though. If the SOX sells off tomorrow on AMATs guidance, there might be a chance to pick up a few shares at a discount. One solid plus is their lack of debt- which goes to survivabilty. The low ratios could be related to future sales slowing, and poorer performance. This too shall pass, if you have a multiyear horizon.

To: KevRupert who wrote (12005)	2/14/2001 9:17:33 PM
From: Grommit	Read Replies (1) \| Respond to of 78515

KEM -- I think Kemet is a fine company with great earnings and growth prospects. It is one of my largest holdings. from their recent press release -- "Overall tantalum and ceramic capacitor consumption remains on a strong, long-term growth trend of 23% over the last decade, and we expect shipments to return to this trend by mid-2001. Barring a recession, we expect fiscal 2002 revenue growth to be in excess of 10% over fiscal 2001 revenues with earnings of at least $3 per share.'' What's a company worth, with little debt, huge ROE, growing market share in tant & ceramic caps, an outlook of 10-20% growth and earning $3 per share? A hell of a lot more than $20, IMO. I will wait out a recession, if it happens. Grommit kemet.com kemet.com