This post was just published on ZYX Buy Change Alert.
The dip in RBCN is a buying opportunity in the speculative category. Please notice the word ‘temporarily’ in the company’s statement.
The company said, “We expect continued progress in growing the wafer business in the third quarter with additional volumes in both polished and PSS wafers. However, we are seeing very limited demand for two-inch core in the third quarter as our polishing customers currently have excess inventory. In addition, we believe that recent capacity additions in the sapphire market, which are primarily targeted at the developing mobile device market, are temporarily impacting the two-inch market…[The] relatively wide range of expected revenue is due to the near-term uncertainty in the two-inch market. We expect two-inch inventories at our polishing customers to be reduced over the course of the third quarter and for demand for that product to improve in Q4.”
Please be sure to consult Trade Management Guidelines for speculative stocks.
What To Do Now?
Those in RBCN may continue to hold but not add if holding 20% or more. Please be aware that this type of stock can get hit disproportionately hard in a market correction. iPhone 6 is ahead. It is not 100% certain that iPhone 6 will use sapphire. GTAT, Apple supplier is having difficulties. The point is to adjust the quantities to your preference.
Those not in RBCN may consider slowly scaling in on any further dip from here.
