>>>>> IS ALL THE BAD NEWS BAKED IN YET??? <<<<<
As long as Akh-MAD Chatila is occupying the CEO orifice, the bad news can NEVER be all baked in. Because everyday that this clueless moron comes to work, he will find a new and innovative way to destroy your balance sheet and enrich himself in the process.
SO, the more appropriate question is : "Has the Board extricated their collective head from their rear-end and fired this incompetent self-serving moron, Akh-MAD Chatila?"
If the answer is a no, the beating will continue.
Let's see the difference between now and four years back:
(1) AhMAD Chatila was not the CEO.
(2) The company had no debt, now it has over 2 billion in recourse and non-recourse debt.
(3) The company had over one billion in cash on balance sheet four years back. Now they have to re-negotiate covenants on loans for minimum liquidity requirements.
(4) The company had much better handle on it's own destiny because of a very high percentage of sales coming from semi segment.
(5) Four years back the Mongol Herd was not knocking down the doors with silicon capacity made possible by FREE capital from the Mongol government. Now the Mongol herd is residing in the living room.
(6) Then, the book value was over ten bucks, all in real assets. AhMAD Chatila has blown it all on buying SunEdison and Fotowatio, expanding capacity and then promptly shutting it down. Now the book value is close to 3 bucks.
On and on.
So, you can compare the price then to now all day long. Just remember that past performance is no guarantee of future results.
Evidently Thornburg believes in future of this company. Just look at the number of shares they own.
We may get some direction after this qtr. Maybe consolidation will take place, just holding on.
That was just about the time Obama started pulling ahead in the polls and the "green" companies started hedging their bets or diverting capital into massive green projects. MEMC was a very healthy, robust company prior. They have always been cyclic and did need to expand past their traditional markets but like every one else that took the easy money (subsidies) in this market - they got hammered when demand field by those subsidies dried up.
I think MEMC can survive unlike most of the solar companies, but if they try to do it thru solar - they will BK themselves trying. Solar will ultimately be driven by nano tech allowing geomtry, and material free decisions on the use of PV cells. Until those.limitations are removed, solar remains a high cost alternative and MEMC is not in the drivers seat to change that. I don't see mgmt responding swift enough to the market changes. They seem to enamored by the potential instead of the reality (kind of like Washington...)