Kemet Corporation is not the next high flyer. It doesn’t have any hot technology that is going to revolutionize their industry. It didn’t just strike Gold in Nevada. It is actually kind of a boring company that makes circuit board-level capacitors for military and industrial uses. But what makes me take notice of it is the chart. It looks like it might be ready to move. Based on the chart alone, I am recommending that my readers keep this one on your radar.
Here is the chart:
Support at $0.45 and $0.50…Resistance at $0.60, $0.65 and $0.80. Stochastics and MACD are turning bullish. The stock is not yet oversold. It is trading in the middle of the bollinger bands.
The latest news is that KEME is strengthening its balance sheet by making a tender offer to the holders of its 2.25% Convertible Senior Notes due 2026. It appears that they has been a strong participation from its note holders. What the company is taking advantage of is that EVERBODY is hurting for cash these days and by offering a discounted price, KEME will get rid of debt at a deep discount. It is a smart strategy that a great number of companies are employing these days and with their strong cash position, they will present a stronger balance sheet going forward.
Boring, yes! But, I can make profit with boring companies, too!
Share This Article
