Best of the Week
Most Popular
1. The Trump Stock Market Trap May Be Triggered - Barry_M_Ferguson
2.Why are Central Banks Buying Gold and Dumping Dollars? - Richard_Mills
3.US China War - Thucydides Trap and gold - Richard_Mills
4.Gold Price Trend Forcast to End September 2019 - Nadeem_Walayat
5.Money Saving Kids Gardening Growing Giant Sunflowers Summer Fun - Anika_Walayat
6.US Dollar Breakdown Begins, Gold Price to Bolt Higher - Jim_Willie_CB
7.INTEL (INTC) Stock Investing to Profit From AI Machine Learning Boom - Nadeem_Walayat
8.Will Google AI Kill Us? Man vs Machine Intelligence - N_Walayat
9.US Prepares for Currency War with China - Richard_Mills
10.Gold Price Epochal Breakout Will Not Be Negated by a Correction - Clive Maund
Last 7 days
US Housing Market Real Terms BUY / SELL Indicator - 16th July 19
Could Trump Really Win the 2020 US Presidential Election? - 16th July 19
Gold Stocks Forming Bullish Consolidation - 16th July 19
Will Fed Easing Turn Out Like 1995 or 2007? - 16th July 19
Red Rock Entertainment Investments: Around the world in a day with Supreme Jets - 16th July 19
Silver Has Already Gone from Weak to Strong Hands - 15th July 19
Top Equity Mutual Funds That Offer Best Returns - 15th July 19
Gold’s Breakout And The US Dollar - 15th July 19
Financial Markets, Iran, U.S. Global Hegemony - 15th July 19
U.S Bond Yields Point to a 40% Rise in SPX - 15th July 19
Corporate Earnings may Surprise the Stock Market – Watch Out! - 15th July 19
Stock Market Interest Rate Cut Prevails - 15th July 19
Dow Stock Market Trend Forecast Current State July 2019 Video - 15th July 19
Why Summer is the Best Time to be in the Entertainment Industry - 15th July 19
Mid-August Is A Critical Turning Point For US Stocks - 14th July 19
Fed’s Recessionary Indicators and Gold - 14th July 19
The Problem with Keynesian Economics - 14th July 19
Stocks Market Investors Worried About the Fed? Don't Be -- Here's Why - 13th July 19
Could Gold Launch Into A Parabolic Upside Rally? - 13th July 19
Stock Market SPX and Dow in BREAKOUT but this is the worrying part - 13th July 19
Key Stage 2 SATS Tests Results Grades and Scores GDS, EXS, WTS Explained - 13th July 19
INTEL Stock Investing in Qubits and AI Neural Network Processors - Video - 12th July 19
Gold Price Selloff Risk High - 12th July 19
State of the US Economy as Laffer Gets Laughable - 12th July 19
Dow Stock Market Trend Forecast Current State - 12th July 19
Stock Market Major Index Top In 3 to 5 Weeks? - 11th July 19
Platinum Price vs Gold Price - 11th July 19
What This Centi-Billionaire Fashion Magnate Can Teach You About Investing - 11th July 19
Stock Market Fundamentals are Weakening: 3000 on SPX Means Nothing - 11th July 19
This Tobacco Stock Is a Big Winner from E-Cigarette Bans - 11th July 19
Investing in Life Extending Pharma Stocks - 11th July 19
How to Pay for It All: An Option the Presidential Candidates Missed - 11th July 19
Mining Stocks Flash Powerful Signal for Gold and Silver Markets - 11th July 19
5 Surefire Ways to Get More Viewers for Your Video Series - 11th July 19
Gold Price Gann Angle Update - 10th July 19
Crude Oil Prices and the 2019 Hurricane Season - 10th July 19
Can Gold Recover from Friday’s Strong Payrolls Hit? - 10th July 19
Netflix’s Worst Nightmare Has Come True - 10th July 19
LIMITLESS - Improving Cognitive Function and Fighting Brain Ageing Right Now! - 10th July 19
US Dollar Strength Will Drive Markets Higher - 10th July 19
Government-Pumped Student Loan Bubble Sets Up Next Financial Crisis - 10th July 19
Stock Market SPX 3000 Dream is Pushed Away: Pullback of 5-10% is Coming - 10th July 19
July 2019 GBPUSD Market Update and Outlook - 10th July 19

Market Oracle FREE Newsletter

Top AI Stocks Investing to Profit from the Machine Intelligence Mega-trend

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