2. MEMC Electronic Materials (WFR) manufactures silicon wafers. The company operates in segments such as semiconductor materials, solar materials and solar energy.
Net sales for the first quarter of 2011 was $736 million, up 68% from the first quarter of 2010. Sales were robust across all segments, particularly from Solar Materials and SunEdison.
Japan's devastating earthquake and unfavorable legal settlements affected earnings during the first quarter. MEMC reported net loss of $4.5 million for 2011 first quarter vs. a net loss of $9.6 million in the first quarter of 2010.Capex for the first quarter was $205 million. With cash and cash equivalents of $684.1 million and operating cash of $225 million at the end of March, the company is comfortably paced to fund its capex program. MEMC is making investments in solar wafer capacity, semiconductor wafer production and poly-silicon capacity expansion. Analysts expect an upside of 75% in the next year. The stock is trading at 6 times its 2011 earnings.