Three Takeaway Stocks: Castlight Health Inc (NYSE:CSLT), Balchem Corporation (NASDAQ:BCPC), Rubicon Technology, Inc. (NASDAQ:RBCN)

Chris Brown - April 2, 2014

Boston, MA 04/02/2014 (wallstreetpr) – Investors apparently took a break from heavy selling of Castlight Health Inc (NYSE:CSLT) to allow it some energy upwards during trading Tuesday. The stock which undertook its initial public offering (IPO) just over two weeks ago has dropped almost 50 percent as concerns arise about it being overpriced. It is clearly hard to justify the pricing of the stock which although valued at close to $4 billion at the IPO, has known annual revenue of just about $13 million and losses running into $62.2 million in the previous year – 2013. Without company-specific new driving the stock upwards, it is clear investors are beginning to read or speculate about prospects in the cloud-based software business, a market that is growing very fast and in which Castlight Health Inc (NYSE:CSLT) thrives with its solutions which help businesses in achieving healthcare cost controls. It is important to keep a close eye here to see what happens with the stock in future.

Balchem Corporation (NASDAQ:BCPC) soared during trading Tuesday, just as it did at the start of the week following its announcement of a deal to acquire SensoryEffects. The acquisition deal is being valued at $567 million and is all cash transaction. The two companies disclosed their definitive agreement towards a tie-up on March 31. According to Balchem management, the acquisition of SensoryEffects is expected to bring positive impact into the earnings per share of Balchem almost immediately. The companies announced that the management team at SensoryEffects will remain in place to continue running the affairs of the business. Before the deal was announced, SensoryEffects declared that it was expecting revenue this year to hit $260 million, with EBITDA coming in at about $53 million.  SensoryEffects was created in 2006 and has performed about 12 acquisitions since. When it took over Quality Ingredients Corp in August last year, it expected to boost revenue to $250 million. And how it has been its turn to be taken over by Balchem Corporation (NASDAQ:BCPC).

 Rubicon Technology, Inc. (NASDAQ:RBCN) popped significantly during trading Tuesday on the back of positive sentiments from JPMorgan Chase & Co. (NYSE:JPM) positive note. The firm upgraded the stock to overweight from neutral and issued price target of $14 from $12. According to JPMorgan, the company is better placed to benefit from the increased demand for smartphone technology given that it provides synthetic materials used in electronic devices.

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Chris Brown

About Me: I have a Phd in Economics Gender: Male Interests: Playing games like cricket, volleyball Favorite Music: hip hop, rock, jazz

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