Jason Stutman’s Robot Stocks – “Bill Gates’ Next Big Bet”

by Theodor

November 6, 2020

In his latest marketing letter entitled “Bill Gates’ Next Big Bet”, author Jason Stutman teases three robotics stocks “poised for up to 900% returns.” According to him, robotics will be the next millionaire-making sector but this is rarely news since the newsletter program he vouches for, former Chris DeHaemer’s “Technology & Opportunity” has been around since 2013 and little has changed since then. 

The newsletter program is part of the Angel Publishing Investment Research group and costs $249 per year. It includes various bonus reports, as well as 12 monthly issues of the report, portfolio updates, flash alerts, and weekly curated content. For those of you who aren’t necessarily looking for a new subscription or an extra charge to your credit card, we are going to attempt to uncover all three stocks right here for free.

Stutman is Angel Financial’s senior technology analyst and the author of Technology & Opportunity, first launched in 2013. He aims to provide actionable, relevant, and entertaining stock market commentary for retail investors in the US and abroad. 

He is the author of hundreds of investment articles, mainly focused on Artificial Intelligence (AI), Virtual/ Augmented Reality (VR), Next Generation Networking (5G), and autonomous machines. Jason Stutman currently oversees multiple investment-focused newsletters.

 

The Opportunity

If you were part of the generation who grew up with cartoons like Hanna-Barbera’s The Jetsons, seeing robots cleaning the house, using your laptop or smartphone for videocalls, having Virtual Assistants to handle your daily calendar, and living in a smart house seems so futuristic. 

Most of these are not only part of the 21st-century reality but even daily existence, including telemedicine and working from home. Although imagining robots and creating them are at least half of century-old news, it wasn’t until recently that they became more popular and affordable. 

In his marketing newsletter, Stutman mentions three tipping points that will lead to the large scale acceptance and use of robots: (1) Amazing Artificial Intelligence development, (2) Stunning Technological Advances, and (3) Dramatically Declining Costs. He starts by saying that “early investors in robots will see the same opportunity” as the ones who initially put their money in such companies as Apple, Microsoft, and Dell in their early days. We have heard similar claims be made in past teasers we have covered here, including: Breakthrough of the Century? and One Stock for the Self Driving Revolution.

There is no doubt that the robotics industry has developed massively in the last couple of decades with major strides being made in just the last few years. The sector unquestioningly permeates many parts of our daily life today – from traffic lights to self-driving cars, smart kitchen appliances, smart houses, and even robot cleaning tools and tech pieces. This trend should continue for the foreseeable future due to some of the very factors Jason mentions here.

 

The 3 Robotics Stocks Being Teased

As he mentioned from the start, Stutman is not only teasing one company but three that are part of the robotics industry, urging subscribers of his newsletter to invest in these stocks as they represent the future. Let’s take a closer look at the hints he provides and see how many of them we can reveal. 

The first company:

  • Stutman has been more than generous with the clues he provides for his first stock pick, so it wasn’t at all hard to guess its name and ticker symbol. He first mentions that you should “ride the Robot Revolution for 50X your money.”
  • He also says that the company “has developed a robot that will help solve the doctor shortage” and then goes on full detail on how the robot looks – “stands 5 feet tall and has a large computer screen for face” and, “because the robot has dozens of sensors, it can navigate busy hospital corridors on its own.”
  • He then goes on to mention that “the company just received FDA approval for their hospital robots” and “they are the only company to have secured the approval of the FDA”, which makes this firm the absolute leader in this niche.
  • As if it wasn’t enough information already, Stutman later confirms that hospital robots are only one small aspect of this company. Also, they have developed security robots that are already saving lives on the streets and battlefields.

For those of you who don’t know what company he is talking about, we have one single word for you – Roomba. iRobot (NASDAQ: IRBT) is the company behind one of the most popular inventions in the 21st century, the self-cleaning vacuum, Roomba. Although it has signed several contracts with the military and iRobot’s products are penetrating the health care system, home-based robots (and, especially Roomba) still generate 75% of the company’s revenues today.

Roomba and its later versions have sold in over 14 million units, with approximately 20% of the world’s vacuums now being robots

The second company:

  • The first clue we receive about the second stock is that “one of this company’s ROV robots just set a record by working off the coast of India at 10,385 feet deep underweater.”
  • He then goes on to mention that, “as the big oil firms pursue operations in deep water, this company stands to make a fortune.”
  • We also hear that “the company is solid. In fact, it announced a 22% dividend increase a few years ago and followed that up with a 23% increase the following year.”

The company Stutman talks about here is Oceaneering International (NYSE: OII). 30% of its revenues are from ROVs and, even though it has some strong competitors, it has the potential of becoming a market leader. The company also spent $200 million back in 2015 to buy C&C Technologies to expand its offshore service offerings.

Founded all the way back in 1964, Oceaneering International has earned itself a solid reputation and its shares will most likely continue to increase as long as the oil industry remains profitable. However, you shouldn’t expect returns of over 900% here as Stutman teases, more like steady, moderate returns over the very long-term.

Third company:

  • The third and final company teased by Jason Stutman “is the world leader in industrial robots”. The author also claims that “this is the industrial robot company that stands head and shoulders above the rest.”
  • The second clue we receive is that “the company is sitting on about $7.9 billion in cash and has ZERO debt.” Moreover, “it has $5.5 billion in revenue with a whopping 28% profit margin.”
  • Another important hint that we are thrown is that the company is so cutting edge that in 2012, “Forbes added it to its list of ‘World’s Most Innovative Companies’.” 
  • Finally, “their customer base reads like a who’s who of manufacturers: General Electric, Rolls Royce, Boeing, Northrop Grumman, NASA, Lockheed Martin, and Raytheon.”

The company in question here is a Japanese one named FANUC Corp. (Tokyo: 6954.T) and the reason why it’s predominantly overlooked by Wall Street and investors in general is because of its eastern base. This has been a long-term trend with Japanese equities.

 

Is Robotics The Next Investment Frontier?

Before investing in any of the aforementioned stocks, you should know that they have been teased for over 5 years, and we’re still waiting for the whopping increases of over 900% as Stutman initially forecasted. 

Even though no one individual can be held responsible for the rise and fall of a company’s stock price, robotics remains a sector in which loads of early-stage companies are active in. So we’re going to keep reminding you that companies at this stage (let alone entire industries) can take years, if not decades to mature, which doesn’t make them attractive for short-term investors looking for fast cash. 

Out of the three stocks presented, all are multi-decade long stories which are still developing. Although they are all well established entities for the most part at this point, which means no outrageous short-term returns are likely, but also no complete disasters are likely either.

 

Quick Recap & Conclusion

  • In his latest marketing newsletter, “Bill Gates’ Next Big Bet”, author Jason Stutman talks about the potential substantial gains in the robotics industry. He pitches a newsletter program, Technology & Opportunity, which is part of the Angel Publishing investment program, for $249 per year.
  • He teases three robot companies we have managed to uncover for free for you, so that now you don’t have to buy into his subscription service just to find out what they are – iRobot (NASDAQ: IRBT), Oceaneering International (NYSE: OII), and the Japanese company FANUC (Tokyo 6954.T).
  • While all these companies might seem like alright investments today, it has taken them over a half a decade to get to this point after initially being teased and many ups and downs, which is exactly what you should expect from almost any investment.

Are you bullish on the long-term prospects of robotics? Do you already have holdings in this sector? Let us know in the comments section below. 

About the author 

Theodor

Theodor is an old school value guy, when he's not looking for great companies and great prices you can find him on the basketball court hooping.

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  1. Always dependable research! You’re great and helping a lot of new investors like me. Thanks for all my savings and most especially your intelligent and accurate research! Thank you again!

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    on the markets and just started investing about 3 years ago.
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  3. I am of the same opinion, that while the stocks are good, safe plays, they are also less likely to deliver substantial short-term gains.

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