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New Value Line Report on Kemet - KEM
Posted by: Dr. Paul Price (IP Logged)
Date: April 7, 2008 11:25AM
In the latest Value Line report [released on-line today and dated April 11] they see Kemet earning $0.44 /share for the calendar year 2008.
While the shares have crept up from a recent low of $3.93 to $4.48 [as of 12:20 PM] they still trade for about 10x this year's projections.
Value Line is using a lower than historical 15 multple in their 3 - 5 year target price range.
Applying that [in my view] very conservative 15 multiple to the $0.44 estimate would bring KEM shares back to a price of $6.60 or up 47% from the current quote.
Kemet shares have actually exceeded that target price during each of the past 13 years. In fact, they hit $9 and up in each year from 1996 - 2007.
By 2011 - 2013 Value Line sees KEM earning $1.05 /share and has a 3 - 5 year target price range of $13 - $19.
Insiders have been buying- Four separate open market purchases during March.
Stocks Discussed: KEM,