iBankCoin

Thoughts on Rubicon

The company is halfway retarded. I should’ve put this money into The Devil’s CLIR or PAMT play. Nonetheless, here I am sitting in a position that is +5%, less than a day away from dinging me for a cool 15%.

What went wrong?

Their biggest customer didn’t order anything for two quarters in a row. It’s pretty hard to claim they’re your biggest customer when they urinate on you like that.

Pricing for silicon on sapphire is abysmal. They need to see prices rise 25% in order to break even.

The good news is three fold.

1. I sold 30% of my position before the bell, told here and inside of The PPT. Oddly enough, before I put in orders, a trading desk called my office and asked for my stock. Apparently there was an aggressive buyer out there, for 50,000 shares, who wanted in just prior to the execution.

2. The company has $31 million in cash and no debt. They don’t expect to burn any cash next qt.

3. Silicon on Sapphire is in its nascency stages. It’s pretty hard to justify selling this stock as the LED market takes off and sapphire is being used in smartphones. That’s supposed to heat up, in earnest, during the second half.

My plan is to buy back the shares I sold today at lower prices, between $5.75-$6.00. This is a second half play and the stock could easily double if prices continue to rise, as the sapphire market expands into the smartphone space.

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32 comments

  1. chivo

    RBCN is down… TENS OF PERCENTILE.

    That is all.

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  2. Julz

    On the bright side at least my in the money covered calls won’t get assigned.

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  3. Julz

    A 15% sell off is just an over reaction and I will gladly buy shares at these prices.

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  4. tom

    who’s the devil ?? he has a blog?? He is on the roll and want a coach tail ride please

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    • The Fly

      Once Jeremy finished the iBC redesign, The Devil will get his blog.

      Feel free to email Jeremy and kindly ask for an update.

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  5. widespread panik
    widespread panik

    Fly, I have a hard time following your thesis’ as this rapid fire market plays out.

    Fly holds big and likes big
    MU (current memory price bull market)

    Fly holds and likes 2nd half story in
    GTAT/RBCN (Sapphire crystal stuff in phones/solar wafers)

    Fly still likes the housing rebound play through USG/DHI?

    What are the Devil’s picks now?

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    • The Fly

      I sold GTAT because I wanted to own RBCN into an earnings maelstrom.

      The other points are good.

      Devil is becoming bearish on stocks, but owns CIMT, PAMT, CLIR, UNXL, BTH, CALL, GDOT and a few others

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  6. tom

    who is the devile?? does he has a blog??

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  7. widespread panik
    widespread panik

    I can’t wait for that sir! What are your thoughts on how to survive the coming down draft. My arse has been toasted from all the miss-timed shorts I tried so far this year. Only TSLA and the AAPL rebound has saved me!

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  8. widespread panik
    widespread panik

    RBCN might trade up or break even by tomorrow afternoon.

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  9. Bill

    Fly,

    What do you think of Japanese market..it’s going up every day. What’s the end game here. If every country start QE …is there a currency war…how do you think it plays out. Just mind boggling. I do see economy improving so something is working but what’s the flip side.

    Bill

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  10. Bill

    Do we wait for pullback to get in wetf. When you have time please share your thought on longer term how it plays. I know it’s not east to comprehend this kind of market intervention. Past can no longer predict future in any ways.

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  11. JoeSixPack

    RBCN murdered

    riverboat gamble for me to hold through earnings

    lesson learned

    queue up some Kenny Rogers

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  12. fake amish

    Wtf is wrong with the inland east coast? Pea eating lunatics.

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  13. razorsedge

    gold is finding buyers

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  14. Buy in May

    I was short RBCN into the close, it has paid me off handsomely everytime for the past year. But I like RBCN for the long run, will be swapping into a long position today. Good luck all. Buy in May and go away!

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  15. TradingProdigy
    TradingProdigy

    More from your friendly neighborhood day trader. The reason I frequent this website is the stocks that The Fly picks out are some of the best trades I can find; however it is up to us to figure out when to enter the trade. Today, a quick trade on RBCN at open, yee hah, free money. Maybe you saw my 2500 shares pre-market at $6.20….thanks somebody for selling to me. LOL. Thanks Fly for bringing this one to my attention, I love low volume volatility. Yes, I know, Kenny Rogers is singing about me again today.

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  16. J Livermore

    Holding RBCN through the pain here. Eventually all Le Fly’s calls workout. I have learned as much in the past, dumping plays only to see them fulfill Le Fly’s prophecy months later.

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  17. Freebie

    I followed you, sold half before earnings and bought back that half at 6.1. Thanks!

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  18. widespread panik
    widespread panik

    I told you so!!

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