Robot analyst Frank Tobe reports that very few companies hawking robotics are actually "pure-play" and that even seasoned investment advisors seem to be ignorant of this fact. In his latest rant on the subject, Picking Robotic Stocks is Complicated: Some are a Waste of Time he details what to look for when picking robot stocks: R. Colin Johnson
Here is the introduction to the latest article from The Robot Report: "Pure play" is an investment term that refers to a company which is exclusively focused on a particular product or service. An investor buys stock in pure play companies in order to obtain a market share in the industry as well as in the company. Robotics, to many, are just a tool to accomplish business tasks in an efficient way. To me, making robots to achieve those goals is an industry in itself and deserving of consideration for investment because of good prospects for the future. Hence the need to find pure play companies in the industry.