Sunday, December 15, 2013

Google (GOOG) Buys Boston Dynamics... What About iRobot (IRBT)?

Google (GOOG) has acquired eight robotics companies during the last six months. A couple of days ago it was reported that Google had purchased Boston Dynamics. Google's aggressive move into robotics makes me wonder about our iRobot (IRBT) investment. Is iRobot now in direct competition with Google? Hmm... Has Google considered buying iRobot?

At the end of 3Q'13 Google had $56.2 billion in cash. IRBT at $29.35 gives iRobot an approximate market value of $847 million. IRBT 52-week range: $17.97 - $41.12. IRBT price-sales-ratio (PSR) is 1.85 (GOOG's PSR is 6.23). iRobot has ~$150 million in "cash" and $0 debt.

iRobot (IRBT) and Boston Dynamics are both headquartered in Massachusetts and are ~12 miles apart from each other.

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