Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, solar-wafer maker MEMC Electronic Materials (NYSE: WFR ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at MEMC's business, and see what CAPS investors are saying about the stock right now.
MEMC facts
|
Headquarters (founded)
|
St. Peters, Missouri (1984)
|
|
Market Cap
|
$3.85 billion
|
|
Industry
|
Semiconductors
|
|
TTM Revenue
|
$2 billion
|
|
Management
|
President/CEO Ahmad Chatila (since March 2009)
CFO Kenneth Hannah (since April 2006)
|
|
Return on Capital (average, last three years)
|
30.3%
|
|
Competitors
|
SunPower (Nasdaq: SPWRA )
Evergreen Solar (Nasdaq: ESLR )
|
|
CAPS members bullish on WFR also bullish on
|
General Electric (NYSE: GE )
Vale (NYSE: RIO )
|
|
CAPS members bearish on WFR also bearish on
|
First Solar (Nasdaq: FSLR )
General Motors (NYSE: GM )
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 1,763 of the 1,820 members who have rated MEMC -- some 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include my Foolish colleague Rich Smith (TMFDitty), who is ranked in the top 1% of our community, and BSHumphreyII.
Two weeks ago, Rich used some Darwinian reasoning to tap MEMC as a natural selection:
The more I look, the more I like this firm's cash generating prowess. Times are tough for wafer makers, sure, but this is one of the best -- a survivor who will end up at the top of the market as weaker players fold.
In an earlier pitch from January, BSHumphreyII expands on the stock's solid fundamentals:
They've been beaten to death in the last year, probably unfairly. ... Their balance sheet looks fantastic, and their returns on equity and capital are in the mid 20s-very solid.
Cash flow from operating activities is trending up strongly, and with a lot of long-term sales contracts lined up, this will probably continue. There are some senile industries in the U.S. that might not recover from the recession (such as automobiles), but semiconductors are not one of them.
What do you think about MEMC Electronic, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
RSS Headlines
Fool UK