Best of the Week
Most Popular
1. Market Decline Will Lead To Pension Collapse, USD Devaluation, And NWO - Raymond_Matison
2.Uber’s Nightmare Has Just Started - Stephen_McBride
3.Stock Market Crash Black Swan Event Set Up Sept 12th? - Brad_Gudgeon
4.GDow Stock Market Trend Forecast Update - Nadeem_Walayat
5.Gold Significant Correction Has Started - Clive_Maund
6.British Pound GBP vs Brexit Chaos Timeline - Nadeem_Walayat
7.Cameco Crash, Uranium Sector Won’t Catch a break - Richard_Mills
8.Recession 2020 Forecast : The New Risks & New Profits Of A Grand Experiment - Dan_Amerman
9.Gold When Global Insanity Prevails - Michael Ballanger
10.UK General Election Forecast 2019 - Betting Market Odds - Nadeem_Walayat
Last 7 days
British Pound GBP Trend Analysis - 14th Oct 19
A Guide to Financing Your Next Car - 14th Oct 19
America's Ruling Class - Underestimating Them & Overestimating Us - 14th Oct 19
Stock Market Range Bound - 14th Oct 19
Gold, Silver Bonds - Inflation in the Offing? - 14th Oct 19
East-West Trade War: Never Take a Knife to a Gunfight - 14th Oct 19
Consider Precious Metals for Insurance First, Profit Second... - 14th Oct 19
Stock Market Dow Elliott Wave Analysis Forecast - 13th Oct 19
The Most Successful IPOs Have This One Thing in Common - 13th Oct 19
Precious Metals & Stock Market VIX Are Set To Launch Dramatically Higher - 13th Oct 19
Discovery Sport EGR Valve Gasket Problems - Land Rover Dealer Fix - 13th Oct 19
Stock Market US Presidential Cycle - Video - 12th Oct 19
Social Security Is Screwing Millennials - 12th Oct 19
Gold Gifts Traders With Another Rotation Below $1500 - 12th Oct 19
US Dollar Index Trend Analysis - 11th Oct 19
China Golden Week Sales Exceed Expectations - 11th Oct 19
Stock Market Short-term Consolidation Does Not change Secular Bullish Trend - 11th Oct 19
The Allure of Upswings in Silver Mining Stocks - 11th Oct 19
US Housing Market 2018-2019 and 2006-2007: Similarities & Differences - 11th Oct 19
Now Is the Time to Load Up on 5G Stocks - 11th Oct 19
Why the Law Can’t Protect Your Money - 11th Oct 19
Will Miami be the First U.S. Real Estate Bubble to Burst? - 11th Oct 19
How Online Casinos Maximise Profits - 11th Oct 19
3 Tips for Picking Junior Gold Stocks - 10th Oct 19
How Does Inflation Affect Exchange Rates? - 10th Oct 19
This Is the Best Time to Load Up on These 3 Value Stocks - 10th Oct 19
What Makes this Gold Market Rally Different From All Others - 10th Oct 19
Stock Market US Presidential Cycle - 9th Oct 19
The IPO Market Is Nowhere Near a Bubble - 9th Oct 19
US Stock Markets Trade Sideways – Waiting on News/Guidance  - 9th Oct 19
Amazon Selling Fake Hard Drives - 4tb WD Blue - How to Check Your Drive is Genuine  - 9th Oct 19
Whatever Happened to Philippines Debt Slavery?  - 9th Oct 19
Gold in the Negative Real Interest Rates Environment - 9th Oct 19
The Later United States Empire - 9th Oct 19
Gold It’s All About Real Interest Rates Not the US Dollar - 8th Oct 19
A Trump Impeachment Would Cause The Stock Market To Rally - 8th Oct 19
The Benefits of Applying for Online Loans - 8th Oct 19
Is There Life Left In Cannabis - 8th Oct 19
Yield Curve Inversion Current State - 7th Oct 19
Silver Is Cheap – And Getting Cheaper - 7th Oct 19
Stock Market Back to Neutral - 7th Oct 19
Free Market Capitalism: Laughably Predictable - 7th Oct 19
Four Fundamental Reasons to Buy Gold and Silver - 7th Oct 19
Gold and Silver Taking a Breather - 7th Oct 19
Check Engine Warning Light ECU Dealer Diagnostic Cost - Land Rover Discovery Sport - 6th Oct 19

Market Oracle FREE Newsletter

Stock Market Trend Forecast Oct - Dec 2019 by Nadeem Walayat

Robots That Can Beat the Market by 100%

Companies / Technology May 23, 2015 - 10:22 AM GMT

By: ...

Companies Michael A. Robinson writes: According to Allied Market Research, by 2020 the global robotics market will reach $82.7 billion, ballooning at a 10% compound rate.

That mammoth grow is being fueled by tech stalwarts like Inc. (Nasdaq: AMZN), Apple Inc. (Nasdaq: AAPL) and Google Inc. (Nasdaq: GOOGL).

My most recent interest in robotics was piqued by a seemingly minor acquisition that Teradyne Inc. (NYSE: TER) just made.

In a time of near-weekly multibillion-dollar deals, Teradyne’s acquisition of a Danish robotics firm for $285 million sounds like small potatoes. But take a look at what that robotics firm is doing:

For Universal Robots, the firm Teradyne bought, sales grew last year by some 70%. And since late 2010, the firm has sold more than 4,000 robots worldwide, increasing sales by 10-fold in the process.

I’ve found a way for us to reap excellent long-term profits from this unstoppable trend – but at a fraction of the cost of any of those giant firms…

Apple-bots, Google-bots, Amazon-bots

Universal Robots is a great fit for Teradyne, a mid-cap leader in equipment used to test semiconductors, wireless products, data storage and complex electronic systems.

Teradyne had sales last year of $1.65 billion and is looking for ways to grow revenues as it adds new efficiencies.

Universal Robots could play a huge role in that effort. The company makes a range of robotic arms used in the automotive, machining and pharmaceutical sectors.

More to the point, the rapidly growing firm is pushing the boundaries of a sector known as “collaborative robots,” so-called because humans can easily work alongside them.

Also known as “cobots,” these machines are on the verge of massive widespread adoption. Teradyne estimates the market will grow by some 35% a year over the next decade.

That makes the cobot sector one of the fastest-growing segments of the robotics industry, which is itself doubling in size roughly every 10 years.

Allied Market Research notes that robots are being used in a wide range of industries. For instance, auto assembly takes top market share and accounts for roughly 39% of sales growth, followed by electronics with 20%.

Rising labor costs and a shortage of skilled workers are two key factors behind the robotics’ broad growth, Allied’s report notes.

Just look at, where robots play a big role in the firm’s rapid delivery system. Three years ago, the online retailer paid $775 million for Kiva Systems, makers of warehouse handling robots.

And Apple also is benefitting from the growth in robotics technology, albeit behind the scenes.

Foxconn Technology Co. Ltd. assembles Apple products in Asia. Foxconn wants to add as many as 1 million robots at its factories and has already fielded an army of 50,000 machines.

Then there’s Google. In robotics, the company is best known for its driverless cars.

Besides that, though, Google has been on a robotic acquisition tear, buying up at least seven firms in the space in recent years. In late 2013, it bought Boston Dynamics, a pioneer in the field known for its four-legged “packbots” that can carry heavy supplies.

The ROBO Solution

With so much going on in robotics, tech investors ought to consider the Robo-Stox Global Robotics & Automation ETF (Nasdaq: ROBO).

With roughly 80 stocks in its portfolio, the exchange-traded fund (ETF) covers just about every conceivable robotics angle.

Let’s start with iRobot Corp. (Nasdaq: IRBT). Founded in 1990, it’s one of the industry’s early entrants. In recent years, the company has moved into video robots for the corporate market, with a line of wheeled machines that hold video monitors.

The company also supplies the military with a line of tracked robots that measure as small as 5 pounds and go up to 330 pounds. And in the consumer market, iRobot sells robots that vacuum carpets and scrub floors.

FANUC Ltd. (OTC: FANUF) is a sprawling Japanese company that operates a U.S. robotics subsidiary. The firm’s robots paint, spot weld and package – the company also supplies factory automation equipment.

So, ROBO is clearly rooted in the hardware that defines the conventional robotics industry. But one of the things I like about this ETF is that it doesn’t limit itself to just machines.

For instance, ROBO has an interest in Nuance Communications Inc. (Nasdaq: NUAN), a firm that specializes in voice-recognition and imaging technology. It boasts some 4,000 patents and services a dozen industries, including mobile, automotive, legal and medical.

Drones Are Robots, Too

Unmanned aerial vehicles, also known as “drones,” also play a role in the ROBO portfolio. As such, it holds stakes in two key suppliers of drone technology to the U.S. military.

AeroVironment Inc. (Nasdaq: AVAV) makes a line of smaller drones that members of the armed forces can quickly assemble and throw into the air for combat surveillance. It also markets a drone that looks and flies like a hummingbird that could eventually be fielded in urban locales.

As you might expect from a sprawling defense contractor, Northrop Grumman Corp. (NYSE: NOC) is focused on larger military drones, including fixed-wing aircraft and helicopters. Northrop also supplies the Global Hawk, an intelligence-gathering drone that can stay aloft for more than 30 hours at a time.

ROBO has a stake in the growing use of surgical robots as well. It holds Accuray Inc. (Nasdaq: ARAY), a small cap that also makes 3D-guided radiation therapy machines, and Intuitive Surgical Inc. (Nasdaq: ISRG), known for its sophisticated da Vinci Surgical System.

Launched only in late November 2013, ROBO is a relatively new fund and was the first ETF to focus on automation and robotics. To mark the occasion, Nasdaq officials allowed a robotic arm to ring the closing bell.

Priced at just $27, it trades at a fraction of some of its notable portfolio holdings. And Wall Street is starting to wake up to the value that a balanced robotics play like ROBO represents.

Over the past three months, ROBO has gained 2.4%, or nearly triple the Standard & Poor’s 500 Index’s return of 0.9% in the period.

But this is a fund that’s just getting started, so its best days are yet to come.

ROBO is an ETF that offers patient tech investors excellent long-term potential – and would make a great foundational play for your portfolio.

P.S. I hope all are “Liking” and “Following” me at Facebook and Twitter. We’ve got a great community there who are eager to make big money in tech stocks today.

Source :

Money Morning/The Money Map Report

©2015 Monument Street Publishing. 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 Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email:

Disclaimer: Nothing published by Money Morning 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 investent 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 after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

© 2005-2019 - 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

6 Critical Money Making Rules