Question: Is i-Robot(IRBT) a good stock to invest in?
http://www.dailyfinance.com/2012/02/09/i…
I personally think the drop in share price was a ridiculous over reaction to a 3% miss between actual revenue and analyst estimates ( I wonder about the margin of error in those estimates)...The first quarter is suppose to be much lower than the last fourth quarter in estimate but I think this is normal for this company.
http://tmx.quotemedia.com/financials.php…
Let us see....what is so terrible about this company???
1. It has NO DEBT...has not had any for years
2. Net income has grown exponentially in the last 4 years and last year was not exactly a banner year
3. We seem to be heading into a mild recovery...so things get worse?????
I think this is laughable (the downward spike...mind you it allows others to get in now.)
http://stockcharts.com/def/servlet/SC.pn…
you look at this chart and you see it was testing an all time high before the plunge. Looks to me that nervous nellies were focused on profits in their shares and bailed in a panic.
It fell roughly to a support at just before $24.50 and I think that is a solid support to build on.
http://stockcharts.com/h-sc/ui?s=IRBT&p=…
You see the confirmation of $24.50 as the support in this chart....you look at the MACD and BBwidth and this is a classic (for me) indication of a bottom. This will be confirmed in the next day or so if the Slow Sto climbs above 20
http://stockcharts.com/h-sc/ui?s=IRBT&p=…
This chart shows things have settled down after the panic sell....The RSI is flatlined immediatly after the drop, CCI is already out of the mud and ADX DI+/- is bearishly neutral
Conclusion:
I think this would be a good entry point. I think the support will hold and the stock will creep back towards the 20dayMA (dotted green line) for starters...when the BB's get tight again .... weeks from now then you will have to make another decision.
BUT do your OWN DD before you make any decision...
Answer:
As far as a company goes, it not really big enough for what I would consider buying myself, the stock itself could see as low as $22.50 soon, but I don't think any worse lower. YOU COULD BUY IT HERE, BUT IT IS NOT TIME TO GET INTO IT YET. SO........WHY NOT PUT HALF OF WHAT YOU WANT TO BUY IT WITH soon AND THEN WAIT WITH THE OTHER HALF OF THE MONEY BECAUSE IT HAS NOT REALLY BOTTOMED OUT YET. THERE IS ANOTHER POSSIBLE LOW PRICE COMING UP SOON. Analysts' do not recommend this stock. It has no real support and could dangerously drop to $18.00. It is down on price due to its last earnings report, not due again until May 9' 2012. I am not suggesting, though, these as a buy. Ford Motors is a good buy right here with a target of $15-16.00. Symbol "F". try those. Good luck.
I own it...I-Robot manufactures Tracked ROV's, mounted with Machine-guns,..and missile launchers,..That blow-up doors, and then go in buildings before Military,..Saving them from tremendous risk...It's remote-controlled, with cameras mounted on board and can climb stairs..Very valuable in warfare in cities,..Iraq and Afghanistan.
The share price crashed when a brokerage house Down-graded it,.. and imho unjustified..
http://finance.yahoo.com/q/is?s=IRBT+Inc…
http://www.bing.com/images/search?q=irob…
http://www.bing.com/images/search?q=irob…
imho,..This is a good time to buy-in..
http://www.irobot.com/gi/maritime/1KA_Se…
http://www.irobot.com/gi/ground/
IRBT has been a strong growth stock for several years. They have leading positions (and patent protection) is most of their markets.
You need to read the latest quarterly earnings report. Link below. While the quarter was good, the revenue and earnings guidance for 2012 was well below analyst estimates. That is why IRBT dropped 30% one day last week.
If you think this is a one-time event, and that previous growth will resume, then this could be a buying opportunity. Just be aware that recent news is weak and the stock is not cheap.
Disclosure: I own a small position in IRBT.