Rubicon Technology (RBCN) Weak On High Volume

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Rubicon Technology ( RBCN) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rubicon Technology as such a stock due to the following factors:

  • RBCN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $4.6 million.
  • RBCN has traded 65,412 shares today.
  • RBCN is trading at 2.89 times the normal volume for the stock at this time of day.
  • RBCN is trading at a new low 6.01% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in RBCN with the Ticky from Trade-Ideas. See the FREE profile for RBCN NOW at Trade-Ideas

More details on RBCN:

Rubicon Technology, Inc. develops, manufactures, and sells monocrystalline sapphire and other crystalline products for light-emitting diodes (LED), radio frequency integrated circuits (RFICs), blue laser diodes, optoelectronics, and other optical applications. Currently there are 2 analysts that rate Rubicon Technology a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Rubicon Technology has been 677,500 shares per day over the past 30 days. Rubicon Technology has a market cap of $112.7 million and is part of the technology sector and electronics industry. The stock has a beta of 0.55 and a short float of 35.4% with 6.73 days to cover. Shares are down 54.9% year-to-date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Rubicon Technology as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • RUBICON TECHNOLOGY INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, RUBICON TECHNOLOGY INC reported poor results of -$1.34 versus -$0.25 in the prior year. For the next year, the market is expecting a contraction of 19.4% in earnings (-$1.60 versus -$1.34).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income has significantly decreased by 69.4% when compared to the same quarter one year ago, falling from -$5.89 million to -$9.98 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, RUBICON TECHNOLOGY INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$2.47 million or 133.67% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 50.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Amazon, Blue Origin, Tilray and Alibaba's Jack Ma - 5 Things You Must Know

Amazon, Blue Origin, Tilray and Alibaba's Jack Ma - 5 Things You Must Know

U.K. Takeover Panel Pits Comcast, Fox, Disney in Final Bidding Auction for Sky

U.K. Takeover Panel Pits Comcast, Fox, Disney in Final Bidding Auction for Sky

US Stocks Edge Higher, Oil and Bond Yields Rise, Amid Trade War Headline Lull

US Stocks Edge Higher, Oil and Bond Yields Rise, Amid Trade War Headline Lull

Oil Extends Gains as US Stockpiles Dip,Iran Sanctions Loom Ahead of OPEC Meeting

Oil Extends Gains as US Stockpiles Dip,Iran Sanctions Loom Ahead of OPEC Meeting

Tilray Shares Go Crazy; Healthcare Services M&A to Remain Strong -- ICYMI

Tilray Shares Go Crazy; Healthcare Services M&A to Remain Strong -- ICYMI