Jim Cramer did a piece on solar stocks last night and said he still doesn’t like China solar stocks (many of which are up at least 50% in the past few months) and that the way to play it is with a beaten down US solar company – MEMC Electronic Materials (WFR).  From an industry standpoint, he highlights the fact that oil prices are inching closer to $100 once again and the increase in construction of US solar plants.  From a company standpoint he highlights insider buying, analyst Richard Prati of Gleacher, predicting that next year’s earnings estimates are way too low and the sale of the largest solar plant in Europe.

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I agree on MEMC and have been highlighting it as a top beaten down green stocks play for several weeks, but the problem with Cramer’s call is that just two weeks ago he said he didn’t like WFR and would sell it at $13 – 14 when asked about in a lighting round.  Granted the sale of the Europe plant happened after that lighting round call, but the Gleacher call and insider buying was out there.  He goes on to say that the company is undervalued and that, “MEMC seems poised to blow away the numbers by the fourth quarter.”  Quite a 180 from two weeks ago.

My feeling on WFR is that it’s a bit too overstretched in the short term and is a better entry around the $11 – $12 area.  The bottom line on WFR and I think Cramer is spot on with this is that the longer term investor should do quite well in this over the next few years.