6. MEMC Electronic Materials ( WFR) Company Profile: MEMC Electronic Materials manufactures and sells wafers for use in the solar industry. Share Price: $4.28 (Dec. 2) 2011 Stock Performance: -62% Analyst Consensus: Before 2011 began, MEMC Electronic Materials wasn't even close to penny-stock land, with shares trading in the low teens. But what a difference a few months makes. Shares have been on a steady slope downward along with most other solar-related stocks. Like other companies, MEMC is dealing with oversupply issues that have resulted in a weaker earnings outlook than analysts expected. Still, MEMC remains a favorite of analysts in the under $5 world. Nine analysts have a "buy" rating on the stock, although that's only 35% of the total number of researchers following the stock. On the positive side, the average price target of $7.43 implies potential upside of 73% over the next 12 months. Bullish Case: Deutsche Bank analyst Vishal Shah is a believer in MEMC despite the rapid drop in share price this year. In November, Shah reiterated a "buy" rating with a $10 price target after MEMC reported quarterly results. "We acknowledge limited near term catalysts for outperformance but believe semis/solar weakness is already priced into shares," Shah wrote in a Nov. 3 research report. "Bottom line: Q3 results were not ideal, but the worst was likely in the shares. Management is taking the right actions and overall execution seems to be improving - the company generated positive cash flow/free cash flow even in a tough operating environment."