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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Donald Wennerstrom who wrote (43426)	2/17/2009 7:48:43 PM
From: Sam	2 Recommendations Respond to of 95616

WFR cuts another deal for wafers. MEMC Cuts Price On Wafer Supply Pact With Gintech Posted by Eric Savitz February 17, 2009, 3:09 pm For the second time in a week, MEMC Electronic Materials (WFR) has announced an agreement to cut the contract price the company is getting from one of its customers. Last week, the company cut the price Suntech (STP) is paying for solar wafers. Today, the company announced a similar arrangement with Gintech Energy. In an agreement reached yesterday, the company amended an October 2006 10-year supply agreement to provide solar-grade silicon wafers to GIntech; the new agreement keeps overall revenue to be generated from the contract the same, but increases volumes and reduces prices. The downward pressure on prices reflects a sharp fall in the price of polysilicon, the raw material used in the production of silicon wafers. As I noted in my column in the print edition of Barron’s this week, the spot price of poly has dropped from $450/kg in mid-2008 to a range of $130-$150/kg, and could be heading to the $40-$60 range. That is especially bad news for MEMC, a pure play on poly and silicon wafers. WFR today is down $1.70, or 10.6%, to $14.41. Permalink \| Trackback URL: blogs.barrons.com