January 28 th 2013. Common Cents Investment Group January, 2013 Agenda T-shirts! Survey discussion Today in the Market Robotics and Biomedical

January 28th 2013

Common Cents Investment GroupJanuary, 2013

Agenda

T-shirts! Survey discussion Today in the Market Robotics and Biomedical discussion


Today in the Market


Today in the Market

http://www.bloomberg.com/video/the-top-ten-stocks-for-jan-28-KcCBO04SRZae4SLmmW~Bzg.html





Today in the Market

Update on Dell Up past $13/share Next earnings date is:

February 19th, 2013

Low P/E ratio : 8.90

The Robotic Industry


Robotics

“The branch of technology that deals with the design, construction, operation and application of robots, and computer systems for their control, sensory feedback, and information processing.”

“These technologies deal with the automated machines that can take the place of humans, in hazardous or manufacturing environments”


Robotics

Robot in a foundry SegwayMilitary Style Robots

Intuitive Surgical Robot

Robotics at Toyota


Robotics

First read about it in the fourth December Kiplinger Letter of last year.In summary:There is tremendous growthSales are expected to sky rocketTechnology changesThe uses are becoming more applicable to our lives and businessesIt’s becoming more economical to utilize robots


Growth

There are 1.4 million industrial robots deployed worldwide Several million more for in-home use

2010 120,000 manufactured and shipped

2012 180,000 manufactured and shipped 50% growth in 2 years


Growth

Three Ds

Too Dirty Too Dull Too Dangerous


Growth

Estimates say there will 210,000 in 2015 A total of ~ 16-million household robotics


Sales

Only 10% of potential industries utilize robots Automobile industry are the biggest users

Spot welding Frame assembly Coating and Paint Transportation Manufacturing Line & Supplies

Major automobile making nations average 1,260 robots for every 10,000 employees


Sales

Only 55 mechanical laborers per 10,000 humans in other manufacturing nations South Korea & Japan remains leader in

robot density 347/10,000 & 339/10,000

United States firms have ~ 135/10,000 By 2015, sales expected to grow about

11%


Technology Changes

Faster internet connections Robots seek information & learn on the job Acquire better models, in real-time Cloud computing Eliminate bulky

processors

Better Micro-Processors Cuts costs and increases efficiency

New materials


Technology Changes

Advanced sensors Sense temperature, pressure, texture much

quicker Higher degree of accuracy Replicate human hand The “Human

touch”

AI (Artificial Intelligence) The act of learning New algorithms Smarter machines


Technology Changes

Nanotechnology Robots small enough to enter the human

body Crossing into the biomedical industry

Also includes precise machining and drilling for nanosurfaces


Technology Changes

Teamwork The ability to combine

efforts and allow interaction

Carnegie Melon

Humans working side by side with robots


Uses

Packers, Couriers, and assistants Walgreens and Toys”R”Us

Industrial Workers Rivets, welds, lifting, etc.

Farming Weeding, fertilizing, etc.


Uses

Medical Clean out arteries, deliver drugs

Military Drones, border surveillance, decoy soldiers, etc. Roughly 35% of current aircraft are drones Bumblebee-size scouts

Household helpers iRobot, Windoro™, laundry folding, etc.


Economic Impact

Boost in productivity Computers boosted output per hour of labor

1.6% in 1970-1995 to 2.6% in 1996-2005

New jobs (Over time) Hard to imagine… With a new industry, comes need for design,

manufacturing, monitoring, fixing, etc. New jobs in related fields


Economic Impact

New Jobs More growth More disposable income

More spending More demand for goods More demand for people to fulfill demand!

Not so painless… Robots will displace thousands of jobs China, Japan and South Korea may take

largest hit No need for labor Manufacturing in the USA


Economic Impact

Investing in automation pays off In 1990 an expansion would have cost a

firm twice as much to automate (robots) than to fulfill with humans It’s about equivalent today

Intuitive Surgical (ISGR)

A quick peak at a stock…


Overview

Sunnyvale, CA Da Vinci Surgical System Less than 1,000

employees


ISRG

Currently dominate the medical robotic industry Biomedical field is known as one of the

most profitable fields for manufacturing Christian discussed this with Atrion

Da Vinci product is revolutionary

Company estimates revenue growth of 21%-23% year after year


ISRG

A lot of cash $4.6B

Very high EPS (Earnings/Share)


ISRG

No outstanding debt Investments

Short: $1.14B Long: $1.6B

Risks: High P/E ratio: 36.17 No dividend


Resources

http://seekingalpha.com/article/400941-my-2-best-performing-stocks-of-the-last-year

http://seekingalpha.com/article/1049421-intuitive-surgical-leads-the-pack-in-robotic-surgery


Membership

Cost is only $20 for the whole year! Benefits:

Member of a very beneficial and informative club that will inevitably be valuable in your future

A network of friends who share a similar interest in investing and personal finance

A virtual portfolio challenge that will strengthen your confidence in investing


Membership

Make sure to check out our website for the presentations Monday night | ccig.osu.edu

Get on our Facebook page and like us!www.facebook.com/ccigosu


Questions?

Questions, comments or concerns?

Documents

January 28 th 2013. Common Cents Investment Group January, 2013 Agenda T-shirts! Survey discussion Today in the Market Robotics and Biomedical