We knew they would come for their money at some point. The Big boys had doubles and triples and more in KEM like many of us did. In the last few days they have been cashing in big time. KEM is testing the old highs in the low $12's before the big flat top breakout we had. All normal in the evolution of a stock that ran up so far so fast. If KEM holds in the $11-$12 dollar area and the volume dries up, I may dabble in a few thousand "trading shares" for some fun. I am keeping another large pile of KEM shares as a core holding for the long haul as I like what Loof has done and the future outlook. $17 and beyond!
I think KEM is heading to $20 by mid JUNE, good fundamental and outlook should get us there.
Look for a share price boost on Monday. Analyst update his numbers for this year and therefore we have an upwards earnings revision.
BTW: KEMs two biggest competitors AVX and VSH, are trading at 17.5 and 30 PEs. With the NEC deal, KEM is more than "on a par" with their competitor's earnings.
Hope to see upgrades this week!
Sold Half my KEM today and paid off the loan balance on the house. Had to stop the bleeding of that mortgage payment every month. That was my goal. It Feels great that I was able to meet my goal and still keep a HUGE pile of Kemet shares for the ride to $17 and beyond. Thank you Kemet!!
Harry Boxer has posted his Charts of the Day video on KEM at TheTechTrader site noting: KEMET Corporation (KEM) had a beautiful breakout last week, and kept going up this week. On Thursday, it was up 48 cents, or 3.5%, to 14.17, on 1.3 million shares traded. I’m looking for it to move up into the 16-17 zone.
OVERBOUGHT and EXTREMELY OVERVALUED!
FalconStocks.com had picked KEM back at $3.70. That's almost a quadruple now!
New updated earnings estimates. Stifel at $ 1.25 for next year. I believe that is low by .20 to .25 and will end up being closer to $ 1.50 in earnings. Why? Global economy picking up with a book to bill over 1.30. Also, next quarter around .05 lower earnings due to the one time refinance. Look at the evaluation versus Vsh and AVX. Lot's of restructuring and cost savings with the new NEC acquisition. Apply a worst case VSH multiple or somewhere in the middle between VSH and AVX and you'll see where the stock should be.
Best news yet is that the book to bill is 1.35 roughly according to management. Next quarter earnings won't be reflective of normal earnings power are carrying the old debt right now for 30 more days as they had to get the financing before calling the old debt. We need Per/Bill to put out some eps numbers for fiscal 18 and 19 for the new company to get a better idea where we can go. Near term $17 to $18 is within range. Looking out 24 months with no recession $25 to $30 might be a possibility. Business seems to be picking up with the global economy.
We are on fire!!
Remember this company is overbought and overvalued. Fair value is $4.50
This stock is under the radar. I have found no other message boards. There will be a presentation at the B. Riley & Co. 18th Annual Investor Conference on May 25 at 10 AM PT. Also the VanEck Vectors Semiconductor ETF has hit all time highs the past two trading sessions.
Negative news will destroy this one. Fair value $4.50!