October 28, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Kemet Corporation (AMEX: KEM ) shares jumped 13% today after the capacitor company reported higher earnings.
So what: Sales were up 43.5% to $248.6 million, and earnings per share hit $0.43, up from $0.23 last year. Demand stayed strong despite a typically weak quarter because of European holiday season.
Now what: The strong results obviously surprised investors and show serious momentum for shares. With just a $271 million market cap, Kemet seems poised for a ride higher on the back of these results. I'm hesitant to buy on such an up day, but as shares settle down I'm hopping on this bandwagon.
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