Cramer picks: iRobot (1/17/2014)
Mad Money host Jim Cramer explains why iRobot is the only publicly traded pure-play robotics company out there.
And after parsing through earnings and Street analysis Jim Cramer was relatively impressed.
He found that, "iRobot may look expensive, selling for 32 times this year's earnings estimates. However, the company has over $5 per share in net cash, and when you back out the cash, the stock's really only selling for 27 times earnings, which is more reasonable," he said.
Also, the "Mad Money" host noted that iRobot has very strong intellectual property portfolio, with 402 issued patents and more pending.
But it was ultimately guidance that won Cramer's favor .
iRobot management reiterated its guidance 23 to 28% revenue growth in the fourth quarter and gave a preliminary outlook for 2014, calling for revenue growth in the mid to high teens.
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I beat him to it! Discovered iRobot in June 2012.