Three Electronic Component Makers Fall on Merrill Downgrade

Shares of three passive electronic component makers plummeted Tuesday after Merrill Lynch cut their ratings, citing a risky outlook for earnings and sales in the upcoming months and beyond.

The brokerage downgraded AVX (AVX Quote), Kemet(KEM Quote) and Vishay Intertechnology(VSH Quote) to neutral from buy for the near term in a note to clients on U.S. passive component makers.

Passive electronic components are elements of every electronic circuit and are used to store, filter or regulate electric energy. Many types of electronic products in the computer, telecommunications and consumer electronics industries use them. ...