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

To: N. Kedarnath who wrote (4353)	4/16/1999 1:30:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 4697

There is a lot of volume today, but not much action. Possibly arbitrage unwinding (but I doubt there ever was an arbitrage opportunity, except for the brokers who probably get an offering discount). In that case, I think that the next step after this "support operation would be down. Unless WFR can gain some pricing leverage, they are not going to make money until their sales rate approaches $250 MM quarterly, which is a good 60% higher than their most recent sales rate. They have a lot of free capacity (both Taisil and their Chinese venture operate at about 50% of capacity), but the end demand seems to be still tepid. Zeev