MEMC Electronic Materials Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of MEMC Electronic Materials (NYS: WFR) , whose silicon wafers are used in a variety of chips for computing and solar technology, fell more than 13% in early trading on roughly three times average volume after lowering its earnings forecast for the full year.

So what: Third-quarter revenue came in well ahead of estimates at $859 million. Even so, management expects just $2.7 billion to $3 billion in sales for the full year. Analysts had forecasted $3.4 billion, according to data compiled by Yahoo! Finance.

Now what: Why should you care? The same oversupply issues that threaten the likes of LDK Solar (NYS: LDK) , Suntech Power (NYS: STP) , and Yingli Green Energy (NYS: YGE) appear to be having a real impact of MEMC. Beware buying in on weakness, Fool. Do you agree? Would you buy shares of MEMC Electronic Materials at current prices? Please weigh in using the comments box below.

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At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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