Investors shuddered in horror as the market was dropping; with the Dow down 800 points in midday trading and finally closing at a better but still dismal 9,955.50, off -369.88or -3.58%.
So, on this terrible day what if anything made a good showing of itself? Four stocks among the ones that I follow popped up.
Apple Inc (NASDAQ: AAPL) closed at $98.14, up 1.07, or1.10%. Apple needs no introduction to most readers of BloggingStocks or anyone breathing almost anywhere on the planet. Although the stock appears to be a fallen star for the time being and is down 51% for the year it managed to outshine almost everything else today. Apple has not traded at a P/E below it's projected growth rate in years so the bargain hunters were obviously interested.
East West Bancorp (NASDAQ: EWBC) closed at $15.69, up0.61, or4.05%. Some banking stocks are recovering nicely and this small California bank with business in the Asian community here and in China as well seems to be getting out from under the taint of the sector. It is one of the stocks I included in Chasing Value: Financial devastation? Still up but less. If I had to 'bank' on whether this stock is higher or lower in a years time I would say higher.
MOST NOTEWORTHY: iRobot, Felcor Lodging and Office Max were today's noteworthy initiations:
Stanford initiated iRobot (NASDAQ: IRBT) with a Buy rating and $18 target and believes better-than-expected military robot sales will allow the company to beat 2008 consensus estimates.
Felcor Lodging (NYSE: FCH) was initiated at Keefe Bruyette with a Market Perform rating and $12.50 target. The firm believes material upside is unlikely given the company's above average suburban and airport exposure.
Soleil assumed Office Max (NYSE: OMX) with a Hold rating and $17 target, as they believe macroeconomic challenges and heightened competition will limit near-term upside in the stock.
MOST NOTEWORTHY: Gen-Probe, iRobot and Emeritus were today's noteworthy initiations:
RBC Capital expects Gen-Probe Inc. (NASDAQ: GPRO) to continue to generate high margin, annuity-like revenue from its core business while new tests with good long-term growth. Shares were initiated with an Outperform rating and $66 target.
Kaufman Brothers believes robotics technology is more than just a fad and that iRobot (NASDAQ: IRBT) is well-positioned given its innovation applications and innovative applications that create new solutions to existing issues; Kaufman started iRobot with a Buy rating and $22 target.
Jefferies believes Emeritus Corp. (AMEX: ESC), initiated with a Buy rating, is well-positioned to drive superior cash flow growth given favorable/stable industry fundamentals and renewed operational focus.
OTHER INITIATIONS:
Piper assumed Comverge Inc. (NASDAQ: COMV) with a Buy rating and $17 target.
iRobot Corporation (NASDAQ: IRBT) is famous for its automated housecleaning robots, the Roomba and Scuba, which are programmed for vacuuming and mopping, respectively. Now the company is planning to introduce another Jetsons-era household helper, the Looj, for cleaning gutters. Word of the new robot comes from Engadget.com, who got their hands on an FCC document showing a diagram of what appears to be a miniature gutter-sweeping tank.
This move appears to be a clear positive for iRobot, as it targets a distinctly more male audience than its other two popular products -- I mean, really, who is more likely to go out and buy a robot to do the chores, Mom or Dad? Wall Street was also excited about the new product, as iRobot's stock rose over 4% yesterday, to $21.89.
Additionally, according to iRobot CEO Colin Angle, consumers should expect to see two new robots at the Digital Life expo, which takes place on September 27-30 at the Javits Center in New York City. Assuming this is one of them, what could the other one be? Personally, I'm hoping it's a bed-making robot.
Real world, futuristic technology plays can be had in the recently declared working partnership between Taser International (NASDAQ: TASR) and iRobot Corp. (NASDAQ: IRBT). The team is developing machines and equipment which could revolutionize the worlds of the military, security and law enforcement, all the while seeking to take real people (in their own bodies) out of harms way.
By forming this working alliance, Taser and iRobot have accomplished two very significant things. First, iRobot has deeply jammed their foot in the door of a market sector which will only grow larger. By taking advantage of the position already secured by Taser, iRobot has eliminated years of marketing work which would have been required to gain for themselves the same position. Second, by teaming with iRobot, Taser has fulfilled a grand desire to enhance product mobility and they have done it without the time and massive capital investment which would have been required to accomplish it alone.
If you're looking for a long-term technology play with relative safety, I'd say this working alliance provides a couple good ones and remember, you're hearing that from the biggest bear on the block. ;)
"Defense companies are in a growth market of the highest order," says Gregg Early in Personal Finance. But rather than buy industry giants, he suggest looking at lower-tier companies that are "either primed for the big leagues or will be acquired by a first- or second-tier company for a big premium in coming years."
One such play is Harris Corp. (NYSE: HRS), which Early notes represents the globalization of the defense industry. According to the advisor, "Special forces in Afghanistan, army units in Iraq and astronauts rely on Harris equipment."
Now, he says, Harris is making a move into Eastern Europe. He explains, "Because these nations are small and need to be unified on a communications level, the company will have myriad contracts with new nations for years to come. Harris Corp is a buy below 56."
Also a global play, the advisor looks to Israel-based Elbit Systems (NASDAQ: ESLT). He notes, "It's difficult to overstate the breadth of the company's client list. From India to the US to Saudi Arabia, everyone has a contract with this diversified defense conglomerate."
In what may be the coolest bit of news to hit the wires all week, Taser International Inc (NASDAQ: TASR) and iRobot Corporation (NASDAQ: IRBT) have announced their intentions to form an alliance to create an army of T-1000 robots. Okay, not exactly. The actual announcement read:
"Under the terms of this alliance the two companies will work collaboratively to develop a new robotic capability utilizing TASER technologies. This combination of capabilities will allow law enforcement, federal, and military users to employ TASER technology from an iRobot platform at a safe distance to engage, incapacitate, and control dangerous suspects without exposing those personnel, the suspect, or bystanders to unnecessary risks, the companies said.
As the first step in this alliance, the two companies have integrated TASER X26 electronic control device technology into the iRobot PackBot Explorer."
This is still exciting news for both Taser and iRobot. It signals that both companies are aware of the limited markets for their niche products -- the Taser stun gun and the Roomba -- and are actively seeking to broaden their scope. How successful will this alliance be? Only after we see a prototype of the iRobot PackBot Explorer with Taser x26 electronic control device technology will we know for sure. But hopefully not as successful as the T-1000.
Issac Asimov would be proud. In today's ever expanding universe of artificial intelligence and robotics, it would seem that no barriers remain to the boundless potential of what robots can accomplish. From cleaning swimming pools to exposing makeshift bombs, robots are now assisting humankind in tasks both dangerous and mundane. As an investment, the world of robotics can potentially provide wondrous long term growth when one considers that mobile robotics are finally being widely accepted as practical in mainstream lifestyles.
On March 30, 2007 Kevin Shult reported that Benchmark initiated iRobot Corp.(NASDAQ: IRBT) with a buy rating and a target price of $17. Kevin stated that Benchmark "believes the company is a compelling investment given its market potential and undervalued stock." Since that time, the company's shares are performing well, which has prompted me to check out the iRobot Corp. company website.
Founded in 1990 by a development team with roots from the Massachusetts Institute of Technology. iRobot currently has interests in some 80 or more robotics and artificial intelligence patents. iRobot is dedicated to developing robotic technologies that can make a positive impact on peoples lives. iRobot manufactures robots that vacuum, pick up, scrub, fight fire, patrol, investigate, detect, extract and educate. It is newly shaping the fundamental practices of military, law enforcement and domestic tasks. Sporting names like Roomba, Scooba and Verro, iRobot has produced name recognition for its products by providing products that function as prescribed.
If investment in cutting edge technology is your thing (and I believe it should be a part of any investment portfolio), then I think you owe it to yourself to check this company out. Robotics and artificial intelligence are tomorrow's new horizons. iRobot has a fun and easy to investigate website which will provide you with everything you need to know in deciding if it's a good investment choice.
We've all seen the infomercials selling those ridiculous vacuums that roll around the floor on their own. And if limited to that role, I'd find little intriguing about the company behind these products -- iRobots (NASDAQ:IRBT). But to my surprise, the company has much more sophisticated units, with a range of potential roles in areas such as lawnmowers to military ordinance detection.
Gregg Early, the editor of The Real Nanotech Investor explains, "iRobot was quite the sensation, and when it issued its initial public offering in late 2005, it took off like a rocket. Then people started to sober up and wonder how a little company that makes cool robotic vacuums could survive as a publicly traded company."
"I mean, how many do you need?" he asks. Many other investors apparently felt the same as the stock plummeted. Then, notes Early, the company recently released depressing earnings news, and the stock is sold off further, nearing 52-week lows.
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Before the bell: Stock futures lower ahead of jobs report, retail sales data
Fed expects unemployment rise into 2010; GDP to fall in 2009
Cramer on BloggingStocks: Cramer bullish on the Dow for '09 -- Part III 
