CAPS Rating: 2 out of 5

The Company is a manufacturer of tantalum capacitors, multilayer ceramic capacitors, and solid aluminum capacitors.


Player Avatar NeroSagetrade (89.56) Submitted: 1/10/2008 7:22:59 PM : Outperform Start Price: $17.25 KEM Score: -128.82

Kemet is in the market of making tantalum capacitors, another one of those highly exciting businesses. When you wake up from that introduction you'll see a company that got incredibly overbought and ahead of itself in 1999-2000 and has now returned to a very attractive valuation. Kemet is trading well below its book valuation and has shown a steady increase in its revenue stream since 2005. In 2005 Kemet produced a shade over 400M in revenue and should produce 1.03B in 2009 and in that time span has seen its stock lose 65% of its value. They are solidly profitable, trading at a forward price to earnings of just 8.2, and have more than enough cash to survive a downturn after a 125M dollar convertible note offering a few weeks back. Solid support in the $5 range on the long-term chart. I see good things in Kemet's future.


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