My colleague Elizabeth Harrow alerted me to some interesting action in MEMC Electronic Materials Inc (WFR). While covering my blog last week, she noted "a remarkably upbeat initiation" of the stock by a Wall Street firm. Today it looks as if that opinion is being reversed. This spurred me to revisit the stock.

I last profiled MEMC Electronic Materials back in September and discussed the disconnect between sentiment and the price action. At the time, the stock was trading near 33 after a steady slide from its highs above 90. However, the Street was firmly in the bullish camp. The shares have lost over 50% since that post yet we see analysts as bullish as ever. As Elizabeth put it - "Considering the stock's year-to-date plunge of 81%, it would appear that analysts are completely ignoring WFR's technical performance."

The stock is ticking to a new annual low today as it drops 10%. The daily chart below goes back 6 months and shows the eerily steady price erosion. In terms of downtrends, they don't occur more orderly than this. Perhaps it is the steadiness that has kept the Street clinging onto the stock, much along the lines of the boiling frog story. At some point, I believe that downgrades are a risk.

Chart Courtesy of Thomson Financial