MEMC Electronic Materials
Ticker: WFR
O'Connor likes another silicon wafer maker, MEMC Electronic Materials. MEMC, based in St. Peters, Mo., makes wafers for both the semiconductor and solar photovoltaic industries. Increased competition, especially from China, and rising outsourcing costs hurt MEMC's margins in 2010, but MEMC is getting costs down. MEMC stock is trading at $12.23, off 28% from its 52-week high. At a P/E of 10 times 2011 estimated earnings, the stock, O'Connor believes, is a bargain for a company whose earnings are expected to grow 50% next year, according to analysts.
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Last updated December 20 2010: 2:49 PM ET
