MEMC Electronic Is Looking to Shine

The dominate producer of polysilicon in the U.S. is MEMC Electronic Material (WFR Quote). The stock dipped initially on the first downward spike in the market a couple weeks ago and then quickly moved back to its all-time highs around $56. It has been basing just under that level recently.

The company is trading with a trailing PE of 32 and is expected to grow earnings 84% in 2007 to $3.05 and should add another 23% in 2008 to take earnings to $3.76. Because of the shortage of polysilicon there is a good chance that those estimates are conservative and in fact the company has recently raised prices 3%.

In a healthy market MEMC Electronic Material is the sort of stock I want to own, and a market correction is a good time to establish a position.

Please note that due to factors including low market capitalization and/or insufficient public float, we consider Daystar Technologies and Ascent Solar Technologies to be small-cap stocks. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.