iRobot

[TGoldman]

Any thoughts on this new IPO? Last year, I received one of their vacuums as a gift and I was impressed with it. Everyone seems to ask about it and want to see it in action when they come over. Lately, I've been seeing iRobots in all kinds of different stores and suspect strong sales growth. Financially, I see a healthy balance sheet and that in 2004 they turned the corner on profitability.

[GeorgeF]

Yahoo says thay are selling (market cap) for $700 million. That seems like alot. I don't know about their military side. I was not impressed with roomba, I think it is a fad. Maybe if it wouldn't get stuck on shoe laces and carpet fringe.

[TGoldman]

It does seem expensive. It's difficult to value the company without knowing their 2005 earnings and I can't seem to find that information right now. It's also hard to compare them to the consumer goods and appliances industry because they're a unique nitch of the market that to my knowledge they are the only major player. I'm unsure if their product is a fad or if it will continue to grow in popularity. So far, it's only gotten more popular over the last two years but it's hard to say if the average consumer will embrace $200+ price tags for what's really just a glorified vacuum. Then again, never underestimate the laziness of people. /images/graemlins/smile.gif

[buffett]

[ QUOTE ]
2005 earnings and I can't seem to find that information right now

[/ QUOTE ]
The S-1/A dated 10/24/05 has operational results for the first 9 months of 2005.

Gross margin seems to be holding steady at around 30%. SG&A's picked up quite a bit, though less %-wise than revenues.

Careful with this stock, though....Benjamin Graham advises investors to "be fearful when others are greedy."