We recently established a long position in Rubicon (NASDAQ:RBCN), a leading vertically integrated manufacturer of sapphire products used in LED applications. With business having bottomed after two challenging years, recent signs of improvement, and strong long-term secular drivers, we think Rubicon offers a very favorable risk/reward profile, with shares trading at $8.47, over 75% below all-time highs. Over the next 6-12 months we see 50% upside to $13 a share, with relatively limited downside. In addition, should the cycle gain strength, or secular drivers pick up momentum, including the very real possibility that sapphire gains mainstream usage in smartphone screen applications, shares could be a multi-bagger and return to the $20s or $30s where they spent most of...
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