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NEW YORK (Associated Press) - Solar energy product maker MEMC Electronic Materials says Taiwan's Tainergy Tech will pay it as much as $3.5 billion in a 10-year solar wafer supply deal.
MEMC Electronic Materials Inc. will supply wafers to Tainergy Tech Co. Ltd. on a take or pay basis and have the right to buy a 10 percent stake in Tainergy.
MEMC also says the sales volume of its 10-year wafer deal with Conergy has been cut to about $4 billion from between $7 billion and $8 billion.
It looks like business is better than ever for MEMC. The stock has taken a 20% dip in value recently and though I'm not buying any more (it's already 9%) of my portfolio I'm definitely holding on to my shares. I think everything is right about this company.
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CountdeMonet
Jul 13 at 1:06 ET
Looks like this will be at least a short term winner. Although the charts don't show a defined change in the downtrend right now, it is getting to oversold levels and there should be strong support at $50. It could however get down into the mid-$30's with continued selling pressure this week. If it does turn soon, then $75 would be a reasonable target level in the next 6 months or so. After that it would be best to take profits and see where things are at.
Longer term this stock will probably need to consolidate further so I wouldn't plan to hold onto it unless your investing horizon is greater than 3 years and you don't mind big volatility/dead money.