Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: LED materials producer Rubicon Technology (Nasdaq: RBCN) is suffering an 11% market drop today on a harsh analyst note.

So what: Sterne Agee sees production capacity outgrowing demand for both complete LED products and the raw wafers. That puts pressure on gross margins, which then cascades to weak results across the income statement.

Now what: Rubicon is a small company with heavy investments in production capacity, so any downtrend in demand for its products would hurt the company in the short term. That's nothing new, though: Rubicon's margins and sales have jumped all over the place in recent years. Like other high-tech businesses in the early stages of a potential growth trend such as Universal Display (Nasdaq: PANL) or LED rival Cree (Nasdaq: CREE), you may want to buy on these dips and then hold on for dear life.

Interested in more info on Rubicon? Add it to your watchlist here by clicking here.

Fool contributor Anders Bylund holds no position in any of the companies discussed here. Universal Display is a Motley Fool Rule Breakers recommendation. Try any of our Foolish newsletter services free for 30 days. True to its name, The Motley Fool is made up of a motley assortment of writers and analysts, each with a unique perspective; sometimes we agree, sometimes we disagree, but we all believe in the power of learning from each other through our Foolish community. The Motley Fool is investors writing for investors.