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What: Shares of MEMC Electronic Materials fell by as much as 14% after the company proposed several corporate changes and provided guidance.
So what: MEMC wishes to change its name to SunEdison, which it believes best represents the business and has stronger brand strength and appeal. The company also announced that it was forming a finance division, SunEdison Capital, which will raise funds for the company's needs.
Now what: The company sees average price per watt to decline from $3.79 in 2012 to a range of $3.10 to $3.40 in 2013, which it says is highly dependent on project types and geographic mix. Capital expenditures this year should be in the range of $120 million to $140 million, compared to the $139 million spent last year. Semiconductor revenue is forecast at $940 million to $990 million, with the second half of the year expected to be stronger as the industry recovers.
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The article Why MEMC Electronic Materials Shares Fell originally appeared on Fool.com.Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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