Barry Posternak
Long/short equity, medium-term horizon, small-cap, micro-cap

iRobot: A One-Product Consumer Electronics Company Misperceived As Riding A Robotics Trend

iRobot has had a big move of late, up 90% in last 52 weeks and 25% YTD, recently reaching an all-time high. Part of the enthusiasm for the stock comes from Google's acquisition of Boston Dynamics for an undisclosed sum. IRBT's stock raced up 17% on the announcement. While Google is interested in robotics, it has acquired early stage private companies more for the engineering talent than their current revenue and profit. Though one can never be certain whether a public company may be acquired in the future, iRobot, which has been public for almost 10 years, does not fit the acquisition profile of Google. The Google acquisition was a gift to IRBT longs, and to those who may choose...

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