Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

An Unstoppable Technology Trend for Investor Profits

Companies / Robotics Jun 14, 2013 - 11:06 AM GMT

By: Investment_U

Companies

Carl Delfeld writes: One of my favorite television series as a child was The Jetsons. Its creators worked to give us their vision of life in 2062 – a full century from the show’s debut in 1962.

We’re halfway there.

But many of the gadgets in the show still seem farfetched. First to mind is the folding space car that fits neatly into a briefcase. And how about eating nothing but a pill for dinner?


On the other hand, the family’s robot maid “Rosie” highlights an area where we are well ahead of the game.

Take “Ava,” the 5-foot robot with an iPad for a brain and Xbox motion sensors to help it navigate around a kitchen or living room. It’s built by Boston-based iRobot (Nasdaq: IRBT).

IRobot has already sold millions of disc-shaped Roomba vacuum cleaners, and its bomb-disposal robots have protected soldiers in Iraq and Afghanistan.

Growth Potential
The military is a key player in the growth of robotics.

The Robot Report notes that Recon Robotics received Marine and Army orders for 1,100 of its Scout XT robots (a $13.9 million deal). And iRobot received a Department of Defense order for 105 of its FirstLook robots (worth $1.5 million in sales).

The health sector is another promising opportunity for robot makers.

IRobot recently expanded its partnership with InTouch Health, a small company that enables doctors at computer screens to remotely treat stroke victims and other patients.

And then there is a $775 million acquisition of Kiva Systems by Amazon (Nasdaq: AMZN). Kiva makes self-propelled turtle-like robots that scramble around warehouses to retrieve and carry packages to their proper shipping point.

Since fulfilling orders costs Amazon about $3.5 billion a year, this fresh robotic technology will help increase efficiency and lower costs.

Following the Leader
While iRobot is an intriguing, high risk/high reward story worth watching, let me tell you about Fanuc (FANUF.PK), a Japanese blue chip.

Headquartered in the shadows of Mount Fuji, Fanuc is the world’s leading manufacturer of computerized numerical control devices that are used in machine tools. Its products also serve as the “brains” of industrial robots.

Fanuc, whose name is an acronym for Fuji Automatic Numerical Control, has been a world leader in robotics since the early 1970s. It was founded as a wholly owned subsidiary of Fujitsu in 1955 after the electronics giant decided to enter the factory automation business.

Fanuc offers investors a pristine balance sheet with zero debt and a whopping $7 billion in cash. Profit margins are impressive with a 38% operating margin and a 26.7% net margin for a return on assets of almost 10%. The company is also showing solid top-line growth with its latest quarter showing a 15.8% rise in year-over-year sales.

One key idea to keep in mind is China’s manufacturing wages are rising by 20% per year. Companies will turn to robots to combat the added costs.

To help prepare for future growth, Fanuc is using a joint venture to build a brand-new 37,900-square-meter facility. The new plant will pump out as many as 3,800 sets of robot systems each year.

But what’s really interesting, Fanuc claims to be the world’s only company using robots to build robots. It’s proof that the Jetsons were on to something big. Robots play a larger role than even the show’s creators imagined some 50 years ago.

With Fanuc stock off 20% so far this year, I suggest you dig deeper into this intriguing opportunity.

Fanuc is a high-quality play on an unstoppable trend.

Good investing,

Carl

Source: http://www.investmentu.com/2013/June/an-unstoppable-trend.html

http://www.investmentu.com

Copyright © 1999 - 2013 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in