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RBCN is strongly vertically integrated |
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making Rubicon powerful in its space. |
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Released on Wednesday, November 30, 2011, 9:00 PM ET
Pittsburgh, PA (SpeculatingStocks) - Rubicon Technology, Inc. (NASDAQ:RBCN) is a corporation that sounds like it should be in the Star Wars Galactic Empire. Their business plan may very well be on its way to creating the first light saber after all. Rubicon researches, develops, and creates crystalline products for laser diodes and optical applications. Mostly they focus on light-emitting diodes (LEDs), as they are a large portion of their market base, but what is perhaps most interesting about Rubicon is that it’s vertically integrated.
Vertical integration in this 21st century is somewhat unheard of: with the Sherman Anti-trust Act and other technology powerhouses being toppled—we all remember Microsoft’s division. Vertically integrated companies can slim down their inventories, reduce costs, and capture market shares quickly and easily; this makes Rubicon an extremely powerful company in the crystalline diode creation sector—even if it is esoteric.
The fact is that many people love, or rather demand, LEDs or other optical implantations that require crystals to function in their TVs, monitors, laptops screens and others, so there is a wide-demand for the products created by Rubicon and we probably have little reason to worry about their business plan.
The financials of this firm are pretty substantial. Holding a current ratio of 10.87; a reported $14 million in accounts payable netted against current assets of $122 million; of which $72 million is cash on hand, this firm is one of the most stable we have ever seen; but it also tells us that they are relying on their equity to fund Rubicon’s growth.
On the technical side, RBCN has a nice annual EPS of $2.22 per share and a price that is 3.89 times earnings, coming in at $9.49 per share (4:00 PM EDT, November 30th, 2011). Collectively the firm has a market capitalization around $214.23 million, so it is a small-cap stock and currently the stock has a 1-year estimate of the stock price of $12.27 per share.
The stock is nice, it has a great business plan to go on, nice financials, and a relatively low price for its stock, which is estimated to go up in the future. This could be a superb company to invest in.
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