KEMET Corp. Message Board
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I think something is brewing...
KEM 11.79
Hold on to your shares for a great ride!! The stock’s price-to-earnings ROA ratio stands at 12.10 AVG on (NASDAQ). http://www.wikinvest.com/stock/Kemet_(KEM)/Data/Key_Metrics#Key_Metrics-
Can anyone tell if short interest has dramatically increased since we peaked? That would make for a nice explanation because we could quickly retrace our steps. I don't think that is the cause though.
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Smart money that has been waiting for oportunity will begin to buy shares of weak hands..shorts will get burned.
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I reported before the slide that something peculiar was going on with KEM, must have been my third instinct; what we are witnessing might be an attempt to take this Co. private at a discounted price, I cannot think of anything else that could justify such a low price, not even a bad market, this is way over done IMO! I am a buyer at this level
- 2 Replies to robertbhs
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Yeah, you're right that "bad market" doesn't explain Kemet's plunge.
Perhaps there were takeover negotiations underway and this caused the stock to rocket to $4.
If negotiations broke down and/or the deal was cancelled, that would explain the severe correction. -
robertbhs, I agree that this big drop is not just the weak overall market. This is way more than the market.
Do you know how they could take the company private. What they would do with the stock holders. If one gets in here at $2.40 then what move they can make to take back the shares. I would assume they would need to make an offer above the market price.
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