MEMC Electronic Materials (WFR) designs, manufactures and sells silicon wafers for use in the semiconductor and solar industry. Recently, the company has been battered by series of problems such as slowing demand, new competitors, manufacturing problems and declining oil prices which threaten to undermine the renewed interest in solar technology. These issues are resolving with WFR demonstrating the superiority of their product over competitors and solar energy becoming a top priority for both U. S. political parties as a necessary part of the current energy crisis. This should result in a rapid firming of fundementals. Technically, the stock has formed and tested a base in the 42 area and is now moving off of that base with good volume. The stock has moved above its 10- and 20- day moving averages and is moving toward near-term resistance near 52, close to the 50-day moving average. I would expect the stock to penetrate this resistance and move toward the next resistance area near 65. Ultimately, the stock should move back toward the 52-week high near 96 as demand for solar energy solutions increases.
$48.09 (08/18/08)
