I bought a small amount of iRobot stock today, after I saw it was down like 14%. The market cap as of today's close is only 271 million. I think this grossly undervalues this company. In the earnings that apparently so disappointed wall street, they expect to finish the year with $45-$48 million in cash. Now forget about earnings for a second, just intellectual property alone, right now this company is looking juicy to a larger defense contractor or diversified manufacturer like say Black and Decker. Chances are it will not be bought, but I do think that the move today seemed exaggerated, that shorts were doing their best to convince people to sell, only to buy back in big in a few weeks to a few months.
We'll see. I think that although the global recession is definitely hurting this company, its long-term future is very bright. It's not even worth a billion yet, but it should get there.