First Solar, Inc. (FSLR): MEMC Electronic Materials, Inc. (WFR) to Benefit From Solar Industry Catalysts

Good Opportunity

MEMC does face risks such as sovereign or political risks (because it operates in several different countries), continued lower pricing of solar modules, dependence on government subsidies and increased operating costs due to capital intensive projects. That said, the growth prospects in the solar space, the company’s earnings expectations as well as its positive outlook for the coming years make the stock a good risk-reward bet.

MEMC Electronic Materials, Inc. (NYSE:WFR) is currently trading around $5, closer towards its 52-week high of $5.70, and like most low-priced stocks in this market, it has been extremely volatile lately: 5% swings either way are not uncommon for this stock. If you are a patient investor who does not mind the volatility, MEMC Electronic Materials (or SunEdison soon) is a very good low-priced stock that has low valuation and high growth forecasts in the coming quarters.

HM Joshi owns shares of MEMC Electronic Materials. The Motley Fool has no position in any of the stocks mentioned.