Summary
- KEMET's recent selloff is way overdone; earnings and revenue growth remain strong.
- KEMET currently trades at a ridiculously cheap valuation despite having exposure to IoT, renewable energy, and ADAS.
- Options premiums are hugely lucrative, making it worthwhile to wait out short-term volatility.
In my first article, I outlined the beginning of my new fund focusing on undervalued volatile dividend stocks that have lucrative option premiums, allowing us to collect income while waiting out any short-term headwinds in strong companies. You can find a link to that article here. You can find the link to the first month update here.
KEMET Corp. (KEM) is trading at $17.46 a share, down from recent highs of around $26 a share back in July of 2018. KEM was one of our initial positions, and we still believe that it is a great value stock with exposure to electric vehicles, alternative energy and the IoT/5G revolution.
KEMET Corporation is a manufacturer of electronic components, including capacitors, Electro-Magnetic Compatible devices, sensors, and actuators. The company was founded in 1919 and now employs more than 14,000 workers across multiple countries.
