Wildstar, Ah, a blast from my past. WFR was one where I was 100 pct. right, took a lot of crap, and never made any money on. -g-
Back when Business Week was running a brain dead article about the coming worldwide shortage in wafer production, I was telling folks on Prodigy that it was a crock. I think that was the first subject I posted to the Masked Man now known as MMV. -g- At that time, I said that the stories were nonsensical and the last time I looked, there was no shortage of sand. But I didn't play the issue, which was a big mistake. It would have been a major winner as a put or a short.
Anyway, we are now talking about a stock down more than 80 pct. Different game. The industry has discovered previously unnoticed (at least by the empty word processors at Business Week) deposits of sand on the beaches and deserts of the world and the shortage is really a glut. Poor old MEMC is now a hurting puppy and major competitors are closing wafer fabs.
The company has earnings losses greater than its stock price. Bankruptcy is likely unless they get a buyout from somebody truly stupid. The good news is, there is no shortage of truly stupid cos. out there, and it may happen. I wouldn't play it, but, as a gamble, you sure aren't risking much.
MB
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