Invest in your Financial Future for FREE

Learn everything you need to know in '9 Secrets of Successful Wealth Management' for FREE from The Successful Investor.

Secrets of Successful Wealth Management: 9 steps to the life you've always wanted, before and after retirement.

 I consent to receiving information from The Successful Investor via email. I understand I can unsubscribe from these updates at any time.

Topic: Wealth Management

Three uneven competitors in the rising robotics industry

Investment Counsellor

Every Monday we feature “A Stock to Sell” as our daily post. With every stock or investment we recommend as a sell, we give you a full explanation of why we advise against investing in it at this time.

A recent question on “robotics stocks for aggressive investing” from a member of our Inner Circle led to this examination of three different companies involved in this growing field. One is a sell, one is a hold and one is a buy.

ReWalk Robotics (symbol RWLK on Nasdaq; www.rewalk.com) is an Israeli company that makes robotic exoskeletons for helping people with spinal cord injuries walk again. The FDA cleared this technology for use in the U.S. in June 2014. It has been marketed in Europe since 2012.

ReWalk was formerly known as Argo Medical Technologies. It first sold shares to the public for $12 each in September 2014.

The company’s ReWalk Personal device is a custom-fit exoskeleton that can be worn at home and work. Hospitals and clinics use its other product, ReWalk Rehabilitation, for therapy.

ReWalk had revenue of $1.5 million in the three months ended September 30, 2014. It lost $3.5 million in the quarter.

We don’t recommend ReWalk at this stage of its development. If you own the shares, we believe you should sell them.


The conservative approach to aggressive investing

The investor’s dream—catch a rising stock that will pay off, and not come crashing down. That’s what subscribers to Stock Pickers Digest discover: rising stocks they can invest in with confidence. They get Pat McKeough’s conservative approach to aggressive investing, a search for hidden value that yields big gains without excessive risk.

The biggest jump has come from Alimentation Couche-Tard since Pat made it his Aggressive Stock of the Year three years ago, up 351% and still reaching new highs. But each of his last two #1 picks have also achieved new highs.

Pat will reveal his next #1 Aggressive Stock of the Year on this coming Friday, January 23, 2015. You can be among to see his pick at a special price. As a new subscriber to Stock Pickers Digest you can save $50.00. Plus you will immediately start getting updates and recommendations on stocks making moves you should know about in our weekly Email Hotline.

Click here to begin your no-risk subscription right away.


Stock advice: Robots that wash and vacuum floors are main products for iRobot

iRobot (symbol IRBT on Nasdaq; www.irobot.com), makes and sells robots, such as the Roomba floor-vacuuming machine and the Scooba floor-washing robot, for consumers. It also makes the PackBot military robot.

The company gets about 88% of its revenue from home robots and 12% from defence and security.

iRobot spends a high 13% of its sales on research. That’s letting it come up with new robots, including the recently introduced RP-VITA for use in hospitals. This robot can be remotely controlled with a tablet. It uses sensors to find its way to a given patient and onboard cameras and displays for face-to-face interaction with doctors.

The stock trades at 22.3 times this year’s forecast earnings of $1.45 a share.

We view iRobot as a hold, but for aggressive investors only.

Note that Google (symbols GOOG (class C non-voting) and GOOGL (class A voting) on Nasdaq; www.google.com) continues to work on a number of robotics projects and acquire many small robotics firms.

The company is focusing on robots that can operate outside of factories and other structured environments. Instead, they will base their movements on sensors and data algorithms. The driverless car is a good example.

Google investors should hold their class A shares, but we recommend the cheaper class C shares for new buying.

Google is a buy.

Coming up Next

Tomorrow we look at why food isn’t the only big seller at one of Canada’s major grocery chains.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.