Debt Free

Most companies would kill for a balance sheet which reflected almost a $ billion in cash on hand, and financials which show greater than a 41% operating margin, a return on assets of over 26%, and an operating cash flow of $705 million. This, coupled with the fact they reside in an expanding market that is projected to experience a 20% annual growth rate according to some wall street analysts, portends well for MEMC Electronic (NYSE: WFR). Solar panels have been the focus of much development of late with resulting increases in manufacturing yield and cell efficiency promising to, along with the increasing price of oil, bring the technology from niche to mainstream.

That's the kind of market to be in, a niche market about to be transformed to a mainstream market. Just look at the past markets to make the same leap; automobiles (not a great example at this point in time, but look at the broader historical context), plastics, aircraft, premium coffee, and electronics. There is a very nce period from just before the niche becomes mainstream to when the market matures and becomes saturated (driving down profit margins) where investors can make out handily. The key is to avoid those companies that will become lost in the inevitable shakeout. NOTE: I foolishly don't own any of this stock, yet.