5-Star Stocks Poised to Pop: MEMC

Recs

20

Disney Buys Marvel!

David Gardner called it. He’s up 1,334%! See what David’s recommending that you buy NEXT.

Stock Advisor

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, silicon-wafer maker MEMC Electronic Materials (NYSE: WFR) has earned a coveted five-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, Miss. (1984)

Market Cap

$2.8 billion

Industry

Semiconductor equipment

Trailing-12-Month Revenue

$1.23 billion

Management

CEO Ahmad Chatila (since March 2009)
CFO Kenneth Hannah (since April 2006)

Return on Equity (Average, Past 3 Years)

30.6%

Cash / Debt

$792.2 million / $28.9 million

Competitors

ReneSola (NYSE: SOL)
LDK Solar (NYSE: LDK)
SunPower (Nasdaq: SPWRA)

CAPS Members Bullish on WFR Also Bullish on

General Electric (NYSE: GE)
Apple (Nasdaq: AAPL)

CAPS Members Bearish on WFR Also Bearish on

Elan (NYSE: ELN)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 97% of the 1,918 members who have rated MEMC believe the stock will outperform the S&P 500 going forward. These bulls include robertshrestha and All-Star TSIF, who is ranked in the top 5% of our community.

Just yesterday, robertshrestha touched on MEMC's particularly bright balance sheet: "Rock-solid financial position. War chest of cash and little debt. Big solar trends in its favor should keep the free cash flowing for years."

In a pitch from last Friday, TSIF focused on the sunny side of MEMC's recent slide. Here's an excerpt:

MEMC recently announced a loss that surprised analysts. At the same time it announced buying a privately held solar panel installer SunEdison … Since MEMC has a good supply of cash, I consider the SunEdison deal to be positive. As far as the loss this quarter, again due to their cash position and the loss being partially caused by a shift in manufacturing locations and the associated costs and that solar power is "catching" on, albeit more slowly than expected a few years ago, that MEMC will bounce back. This pick may take a while to mature, but I like the 10% discount I received from the market today.

What do you think about MEMC, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

Like this article? Get our best articles delivered direct to your inbox at no cost. Sign up for Foolwatch Weekly by entering your email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor selection, and Elan is a recommendation of Rule Breakers. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

TD AMERITRADE
more info
ShareBuilder
more info
Power E*Trade

more info
Scottrade
more info
Fool Disclosure

DocumentId: 1024518, ~/Articles/ArticleHandler.aspx, 11/21/2009 4:37:14 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

The Must-Read Story on Fool.com
An Open Letter to the Federal Reserve

Related Tickers

11/20/2009 4:03 PM
ELN $6.46 Down -0.18 -2.71%
Elan Corp, plc (AD… CAPS Rating: ****
GE $15.59 Down -0.17 -1.08%
General Electric C… CAPS Rating: ****
LDK $8.00 Up +0.27 +3.49%
LDK Solar Co., Ltd… CAPS Rating: ****
SOL $4.08 Down -0.10 -2.39%
RENESOLA LTD CAPS Rating: *****
WFR $12.08 Down -0.27 -2.19%
MEMC Electronic Ma… CAPS Rating: *****
AAPL $199.92 Down -0.59 -0.29%
Apple, Inc. CAPS Rating: ***

Community: Investing Wiki

Term Of The Hour

Finance company: A finance company is store front business that makes high interest personal loans to those with a job and a credit rating. The best known are Household Finance (HFC), Dial Finance, and Beneficial Finance but local companies provide the service in many areas.

Want to learn more or edit this definition?
Click here to read more!