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written by reader Kemet Electronics (KEM)

By goodlookinstuff, November 11, 2019

Thanking the “irregular” reader for an opportunity to compete for a FREE subscription to GUMSHOE land.

I would like to present to you a company called KEMET ELECTRONICS (KEM). They manufacture a full line of tantalum and ceramic capacitors. They also manufacture actuators. They are part of the semiconductor group. Their business runs in cycles and they are highly dependent up upon a robust consumer market for electronics such as cell phones. The entire semi group of stocks have been under pressure because of the trade war with China. But, KEM, for the most part, has not been much impacted by this. They have mfg. plants in China and Mexico. Their earnings continue to outpace their competitors and they seem to be doing everything right. They are hiring and expanding.

Please check out their earnings and future expectations for earnings… not many companies can display these kinds of numbers. They have had one upgrade recently to a buy but with this market the pop was short-lived.

If the US and China comes to terms on a trade deal, I believe the market will price in a reasonable PE for this stock and we could easily see a 50% move quickly….

All the Best

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.



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Travis Johnson, Stock Gumshoe

Nice timing on this suggestion with today’s takeover offer!

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👍 15112
3 years ago

KEM was one of the companies teased by George Gilder last summer. It may not have been his moonshot pick, but it certainly performed well soon after the summit and, arguably, the best of the stocks teased. I almost feel bad that this centenarian (yup, founded in 1919!) is in the process of being acquired by Taiwanese company Yageo Corp since it has survived all the wars, crashes and recessions of the past 100 years.

Question for Travis or Gumshoers that bought this stock last summer: What should a current holder do — wait for the acquisition to be completed or sell now?

👍 250
3 years ago

Congratulations goodlookinstuff and thank you for introducing $KEM to the Gummunity! Best!

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👍 11466

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