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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: Carl R. who wrote (3799)	9/16/1998 6:48:00 AM
From: Jonathan Edwards	Read Replies (1) \| Respond to of 4697

I think MEMC can survive as long as VEBA wants to prop them up. I just hope that's long enough for things to turn around... They say Third-quarter sales are expected to total $160 million to $165 million due to lower product volume and prices. MEMC expects to post negative third-quarter gross margins in the mid-to-high teens. This looks like it means gross margins in the $30 million dollar loss range, which if we use the 2Q report as a rough guide gets us to an operating loss of about $67 million (assuming all the restructuring costs were recognized in 2Q), EBIT of about negative $77 million, say negative $65 million net of taxes, and as a wild guess a $75 million loss after the JVs are taken into account, for a final net loss of about $1.85-$1.90 per share (assuming Yahoo's 40m shares outstanding is still accurate)?