Wednesday, November 3, 2010

Big Differences Of Opinion On MEMC

An old rule of thumb says it is difficult to make any real money from names where the analysts are already all in agreement. The idea is that everybody already knows the story, and the only way to profit is to be contrarian (and right!). So, what should investors make of MEMC Electronic Materials (NYSE: WFR)? Analysts are all over the place on this name, and this seems like a classic case where an investor with better information (or a luckier guess) could make some real money.

Third Quarter Results - Better But Not Better Enough
In a vacuum, there would seem to be little wrong with the company's third quarter. Revenue rose 62% from last year and 12% from the Q2, as solar materials were up strongly and semiconductor materials demand was positive as well. Nevertheless, the company was about 6% shy of analyst estimates, and there is ample skepticism about the near-term outlook for demand in both semiconductors and solar energy.


The link below leads to the full piece:
http://stocks.investopedia.com/stock-analysis/2010/Big-Differences-Of-Opinion-On-MEMC-WFR-ENTG-CCMP-ATMI-RNWEY-SUOPY-STP1103.aspx

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