MEMC Electronic Materials Inc (WFR)

MEMC Electronic Materials (WFR) is a company based in St. Peters Missouri involved in the manufacturing and development of silicon wafers, which are important in both the semiconductor industry as well as the solar power industry. Over the period from 2005 to 2006 the revenue growth of the company increased 39% to approximately 1.5 Billion dollars in revenue. The semiconductor industry represents a total market value of approximately $10 billion dollars with a growth rate of 10%. In addition, the company has also started manufacturing silicon wafers for the solar power industry. The expected total market of solar wafers is approximatly $4 billion dollars with a growth rate estimated at approximately 30% per year. Given the expected growth in the solar wafer industry, it looks like (WFR) may be poised for high growth over the next several years. With a price to earning ratio of 36.52, I think this company appears to be a bargain relative to First Solar. Analysis of First Solar is upcoming.

FSLR vs WFR

There is little disagreement that globally there is a great need to find a viable alternate to fossil fuel for energy production. Conversion of solar energy into a usable substrate holds great promise in this arena. Here we will compare two companies in the process of converting solar energy into power. The two companies are as follows:

First Solar Inc, (FSLR) Price: $266.40, P/E: 196.79, Market Cap: $20.77B
Profile: First Solar is involved in the manufacturing of solar modules using a thin filim semiconductor technology. The company employs a thin layer of cadmium telluride semiconductor material to convert sunlight into electricity.

MEMC Electronic Materials Inc (WFR) Price: $91.23, P/E: 36.53, Market Cap: $20.9B
Profile: The company is involved in the manufacture and sale of silicon wafers. Their wafers vary in diameter, surface features, composition, purity levles, crystal properties and electrical properties. These wafers ares used as a starting material for the manufacture of various types of semiconductor devices, including microprocessor, memory, logic, and power devices.

FMCN - 173 shares at $57.70

"Anywhere, Anytime, Any Screen" is the goal of the out-of-home Chinese advertising company Focus Media. The company operates a large network of advertising screens in China which includes digital billboards and digital frames. In 2006 the company derived 99.1% of its revenue from its advertising service. In an effort to expand its exposure Focus Media has been on an agressive run of acquisitions which includes competitors Target-Media and CGEN as well as the acquisition of China's largest WAP-based mobile advertising company Dotad. With these recent acquisitions Focus Media seems poised to greatly expand its earnings and with the 2008 Olympics coming to China, advertising slots are sure to increase in price. Currently, the FMCN trades at a P/E: 52.32 and Market Cap of 7.35B, we will track the approximately 10,000 dollar investment.

FMCN

FMCN: Focus Media Holding Limited
Date: 12/11/07
Price: $54.86
Plan to buy $10,000 (imaginary) shares at opening on 12/12/07
Profile: Operates advertising in the People's Republic of China. Advertises using audiovisual television displays.

This stock is one of those recommended on Mad Money as one of the four horsemen of China. Jim Cramer predicts that the stock will reach $75 in 2008.