Wafer Maker MEMC Falls on Downgrade

By TSC Staff ,

Silicon wafer maker MEMC Electronic Materials (WFR) was down 9.7% in midmorning trading after Merrill Lynch cut its rating on the stock to reduce from accumulate.

Merrill widened its 2001 per-share loss estimate on MEMC to $1.67 from $1.55. Merrill said its checks have shown a 20% drop in volume in the second quarter after a 14% drop the first quarter.

MEMC will have difficulty reducing costs enough to become profitable "in the foreseeable future," Merrill said.

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