Dec. 24--On Christmas Eve of 2007, shareholders of MEMC Electronic Materials Inc., which is headquartered in O'Fallon, Mo., had reason to be merry: The company's stock closed at a record $94.02.

The price was a 137 percent increase from the previous year as sales leapt 25 percent to $1.92 billion in 2007, with profits reaching $826 million.

This year, however, MEMC investors are seeing harder days. The market has softened for electronics and solar products, which use the silicon wafers made by MEMC and its partners. Combined with production mishaps, the company's sales have failed to grow as quickly as investors had expected.

Since its high one year today, MEMC shares have tumbled 86 percent. Analysts estimate that the 2008 profit will be $460 million.

Now MEMC faces a challenging economy without the leader who many credit for raising the company's profile and profits. Nabeel Gareeb, the chief executive and president, abruptly resigned in October with little explanation.

Though analysts still see a bright future for MEMC, they also say MEMC needs to make some changes as it moves ahead. The wafer maker must soften its aggressive pricing strategy to continue its strong sales growth. Further, analysts say, the company must rebuild bridges with investors and Wall Street by setting more realistic earnings guidance, an issue that has vexed shareholders this year.

"(Gareeb) played hardball with customers. He played hardball with analysts," said Paul Leming, an analyst in Princeton, N.J., who is associated with Soleil Securities. He rates the company as a "buy."

MEMC makes polysilicon, a raw material that is the main ingredient of semiconductor wafers for electronics and solar wafers for solar cells, which convert sunlight into electricity. MEMC also makes semiconductor wafers, and it supplies solar wafers produced by other companies.

Three-quarters of 25 analysts who cover the company give the stock a buy rating, according to Bloomberg.

"They have more (intellectual property) than a typical polysilicon manufacturer," said Adam Krop, vice president of equity research for Ardour Capital in New York. He has a buy rating on the stock.

Even with a global recession, analysts predict MEMC will post a profit of more than $500 million in 2009, according to a Bloomberg survey.

Much credit goes to Gareeb. MEMC suffered huge losses in the four years before he became CEO in April 2002. During Gareeb's first year as CEO, the company sharply reduced losses. Since then, the company has been in the black.

"Nabeel was successful in turning around a debt-ridden (company) ...