Premarket Alert: MEMC Electronic Materials (WFR)

Posted in General 
June 24th, 2009

MEMC Electronic Materials (NYSE: WFR) shares are down about 3% in heavy premarket volume after JP Morgan downgraded the stock to Underweight from Overweight, citing bigger-than-expected declines in average selling prices for polysilicon.

If that’s the case, it could affect MEMC in the solar wafer business, where it might be forced to renegotiate lower price with customers. And while solar has driven the stock in the past, lower prices may also affect its chip wafer business, as smaller competitors that are not hedged could have an advanage. — Mike Tarsala

 

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