J.P. Morgan Comments On Impact Of Earthquake/Tsunami On MEMC Electronic Materials

In a report published by J.P. Morgan, MEMC Electronic Materials WFR stock has outperformed as of late, likely due to speculation that its Japanese semi wafer competitors Shin-Etsu and SUMCO would be negatively impacted by the effects of the earthquake and tsunami that recently hit Japan.

J.P. Morgan said that Shin-Etsu issued a press release indicating its Shirakawa plant, its largest ingot and wafer production site, has been negatively impacted, while SUMCO also announced that it had halted production at a facility in Yamagata prefecture due to the damages suffered from the earthquake. “We believe it's likely that these supply disruptions and any associated price increases will prove to be short-lived, and we reiterate our UW rating on MEMC shares.”

MEMC Electronic Materials closed yesterday at $13.37.