Oil prices rise well above $100.
MEMC beat analyst expectations with its earnings release. Revenue grew 27% and net income nearly tripled from 4Q a year ago.
When the Solar Energies Industry Association warns that a new Congressional energy bill may leave out incentives for renewables, investors dump a number of solar stocks, causing MEMC to fall 4%.
MEMC Electronic Materials Inc announced a 66 percent rise in quarterly profit, which exceeded analysts’ expectations. MEMC reported earnings of $151.5 million (65 cents a share) in the third quarter compared to $91.1 million (40 cents a share) last year. The company also entered into a wafer supply contract, which will result in revenue of $7-8 billion over 10 years.
MEMC's shares jump as the company announces its inclusion into the S&P 500, a widely accepted stock market index basket.
The company had fewer "spot" purchases of silicon wafers (meaning outside of a long-term contract, and generally higher-priced because wafers are in short supply) than expected. A key analyst, RBC capital markets, downgraded the stock as a result and predicted sky-high silicone wafer prices would collapse in 2008.
Competitors Hemlock and M. Setek announce plans to increase capacity output, causing MEMC's shares to drop slightly. Expanded supply means lower prices for the market overall.
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