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MEMC Electronics (WFR) continues to struggle and missed Wall St EPS
estimates after the bell today, posting another quarter of red ink at
-.02/share (minus one time cost associated with Sun Edison
acquisition)
Wall St expected a flat quarter and the whisper number actually called for a small profit, so the stock is selling off a bit after hours, but how it trades tomorrow will depend largely on the guidance which the company will give ahead of the bell tomorrow.
I still believe WFR is close to bottoming out and that the stock saw the lows in 2008 at $10/share. Despite the earnings miss, revenues continue to improve sequentially after bottoming out in the first quarter of 09 (last 4 qtrs – $214 mill, $283, $310, $357), but it’s probably going to take more time for this big, double bottom base to play out. I’ll continue to watch it looking for a place to add a long term position. I think that happens with a few weeks or couple of months max.
Shares are currently down about 3% in after hours trading.
