MEMC Electronic Materials hit a new all-time high today in the wake of deals with solar cell companies.
The company began its incline after it ramped 19.9% higher on Friday, following the signing of a 10-year solar-wafer contract with Conergy, worth $7 billion to $8 billion, as well as extending its contract with Gintech.
Some analysts predict solar wafer contracts to become more than 50% responsible for WFR earnings by 2009; if that is the case, the company's profit forecast for 2009 could top $5 a share on more than $3 billion in revenue. Other analysts tracked by Zacks feel similarly, as MEMC currently boasts 8 strong buy ratings, 3 buy ratings, 1 hold rating, and no sell or strong sell ratings.
Before signing the Conergy and Gintech deals, shares of WFR had seen a trend of meeting support at the 56 level and resistance at 64 since March. Since breaking through, the stock has hit a new all-time high of $75.88. As of 1:15 p.m., WFR is up 5.5% at $74.99.