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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

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