Losing Confidence In iRobot (IRBT)

iRobot Corporation (IRBT) continues to slide and is now approaching its IPO price of $24. The stock is sitting at its 52 -week low of $24.58 and is showing no signs of life. The recent slide seems to be due to the price drop of Scooba floor washing robot which was supposed to have higher margins than Roomba at $399.99. It would indicate that the price drop is due to sales not meeting expectations.

Furthermore, the lockout period ends on 5/8/2006, which could put further pressure on the stock. iRobot needs to come up with a nice earnings report for this quarter to get the stock moving up again. So far things are not looking so good for the robotics company.

IRBT 1-yr chart:

(Full disclosure: I own shares of iRobot.)

Comments

[User 122781]

iRobot has a secret/unofficial $200 million contract.
Get the scoop.

www.xconomy.com/2007/1.../