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
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 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


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,



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:

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 - 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