Wednesday, May 23, 2007

MEMC Electroni Materials (WFR): serious supply

I like to keep an eye on WFR. I'm hoping there will be a continuation of the correction that began a few weeks ago.

Today, it was announced that WFR would be added to the S&P 500. I was a little bummed, because I expected the price to really skyrocket. As expected, the stock jumped and was up $2 before the open. What was really surprising was the price action for the rest of the day. WFR slowly gave up its gains and ended the day up only 0.4%. Tom O'Brien picked up on this today, and mentioned it on his show.

Looks like some big money players took advantage of the announcement and sold, sold, and sold some more. Perhaps I'll get my entry point after all. I'm looking to buy WFR at the 47 or 49 price point.

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