MEMC Electronics (WFR) Misses Estimates, Posts Loss But Continues To Improve

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.

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