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.

MEMC Electronic Materials (WFR)

MEMC Electronics (WFR) is holding up extremely well! If the relative strength continues I'm definately going to pick up some shares again.

Remember, the most important thing to be doing during a correction is keeping a good CANSLIM watch list and acting upon it when the market has a follow-through day.

If you get bored, eat some Cadbury Eggs. They only come once a year!

QID trade

I added to my QID position on the big spike this morning. I also sold out my WFR position. I buy it again on a more substantial pullback.

I've been watching you Ormat (ORA) and Atheros (ATHR)

Here is a stock that I've been watching for a long time. Ormat Tech. is a subsidiary of Ormat Industries, an Israeli company that builds geothermal plants for energy generation. ORA has been in a tight consolidation for almost a year. I've kept an eye on it because I like what the company does and I've also felt that if it could bust out of the flat base that it was in, ORA could really take off.

Well it seems that Bush's budget proposal gave Ormat the kick-start that it needed, promising tons of money for alternative energy. It will have to prove itself to me, but things are looking good. I also expect the budget to have a positive effect on MEMC Electronics (WFR).


Atheros (Athr) has also been on my watch list for a while now too. It has endured a large and long price correction that looks to have ended. Athr broke out of a cup-with-handle pattern today. I won't chase it because I already own a similar company, Silicon Motion (SIMO), that had another huge day today.

MEMC Electronic Materials (WFR) and Silicon Motion Technology (SIMO)

So it is superbowl Sunday and I'm stuck at home writing a research proposal for my boss. Uhg.

As a break, I thought I might write about a couple of buys I made last week. I'm still up on my QID hedge so I feel quite comfortable buying some tech stocks. The first buy was MEMC Electronic Materials (WFR). This is a large-cap company that sells silicon wafers to semiconductor and solar cell companies (silicon wafers are the primary materials in solar cells). I like the chart, breaking out to new highs, but also like the way all of the solar energy companies have been acting. Look at Sunpower Corp. or Suntech Power (STP).

On the fundamental side, check out what Will Gabrielski had to say about WFR last week. I really trust his analysis, mainly because it was Will that opened my eyes to Flotek Industries. He has a tendency to be a little early when it comes to trades, but he is usually right about the overall story.


The second buy I made was Silicon Motion (SIMO), a small-cap semiconductor company that supplies electronics for consumer electronics like mp3 players, cameras, and notebook computers. Simo just broke out of a cup-with-handle chart pattern on massive volume. I love that kind of action.