Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of MEMC Electronic Materials (SUNEQ) fell by as much as 14% after the company proposed several corporate changes and provided guidance.
So what: MEMC wishes to change its name to SunEdison, which it believes best represents the business and has stronger brand strength and appeal. The company also announced that it was forming a finance division, SunEdison Capital, which will raise funds for the company's needs.
Now what: The company sees average price per watt to decline from $3.79 in 2012 to a range of $3.10 to $3.40 in 2013, which it says is highly dependent on project types and geographic mix. Capital expenditures this year should be in the range of $120 million to $140 million, compared to the $139 million spent last year. Semiconductor revenue is forecast at $940 million to $990 million, with the second half of the year expected to be stronger as the industry recovers.
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