Small Cap / Materials / Semiconductors & Semiconductor Equipment
KEMET Facility Restructuring Updated
On November 17, 2011, KEMET Corporation (NYSE: KEM) announced that its previously-announced facility restructuring is ongoing and that the Company will take a charge to earnings related to severance expenses of approximately $6.5 million to $7.0 million during the current quarter that ends December 31, 2011. The Company also announced its intentions to continue its restructuring efforts within Europe, primarily within its Film and Electrolytic segment, with various facility closures expected to commence during the Company’s next fiscal year that begins in April 2012. Construction will start in the near-term on a new facility in Pontecchio, Italy, that will allow the closure and consolidation of multiple manufacturing operations located in Italy. The Company expects to achieve cost savings related to these actions of $3 million to $4 million in its fiscal year ending March 31, 2013 and an additional $7 to $8 million in its fiscal year ending March 31, 2014. Beginning in the fiscal year ending March 31, 2015 the Company expects the annual cost savings will be approximately $15 to $18 million.
Read More Purchase Recommendation Updates
Identify & Profit from Distressed Investing
Turnaround Investing Blog
In nearly every case, the shares of a company in bankruptcy become worthless. In very rare cases, however, they can become great investments. W.R. Grace (NYSE:GRA) shares produced a 75-fold return, as an example. With California utility PG&E (NYSE:PCG) now in bankruptcy, the range of possible outcomes for its equity is wide.
EV/EBITDA: What Is It & Why Are We Using It More?
In reading recent editions of The Turnaround Letter, you have probably noticed that we are increasingly using EV/EBITDA as a valuation measure, rather than the better-known price/earnings multiple. We thought it might be useful to describe this measure and why we like it.
Turnaround Letter Stock Pick Named Top Performer of 2017
What Last Year's Top Stock Pickers Are Buying in 2018
This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.
George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."
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