The Casual Investor
Investing tips for those who are not yet rich
Stock Pick 11/27/2007: WFR

For today's stock, the word is alternative energy.  Specifically, the company in the spotlight is MEMC Electronic Materials, Inc (WFR).  MEMC is a large company, having a market cap of $15.12B, and their business is in polysilicon.  They supply granular polysilicon to producers of solar voltaic cells.


On April 4th, 2006, MEMC was in the news for its involvement with the solar cell market.  The article, found at http://www.memc.com/PDF_files/InvestorBizDaily_041006.pdf, claimed that demand for WFR's products would rise steadily at least through 2010.  Charts of the stock price support the conclusion that was drawn about 20 months ago; the stock's value has approximately tripled since January 2006.


WFR's gross profitability is 40.2% and its profit margin is 32%.  Its average return on capital is approximately 29.8%.  The profitability could be better, but it probably will be as demand continues to rise.  Finally, the analysts are currently recommending purchase of this stock.  You should never start your research by looking at the analyst recommendations, but if you think a stock will go up and the analysts agree, it's one extra vote of confidence for your investment.


2007-11-28 05:19:38 GMT


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