Sterne Agee Reiterates Sell on Rubicon Technology

Sterne Agee reiterated its Sell rating on Rubicon Technology RBCN. In a research report published today, Sterne Agee stressed its belief that the company's fundamentals will deteriorate in the near future. In the report, Sterne Agee states, "We do not believe the higher tax rate should be viewed as a reason to sell the stock. Instead, we think investors should sell the stock in anticipation that over the next 12 months, fundamentals are going to get worse, not better. We maintain our view that sapphire pricing is already starting to come under pressure, even without new capacity coming on line from GT Solar's (SOLR, $13.12, NR) customers." At the moment, Sterne Agee has a price target of $14 placed on the company's stock. On Wednesday, Rubicon Technology lost 5.4% of its value to close the day at $18.80. Its shares regained some of their yesterday's losses in today's pre-market trading, however, rising 2.66% to $19.30.