A few things to think about:
First, the runup in ROBO today was due to the Calandra article on CBS Marketwatch. I thought it was extremely interesting that, of the hundreds of tech stocks that he's covering in Israel this weekend, he only specifically mentioned 10 companies...ROBO was one, mentioned in the same space as huge, large-cap stocks like ORCT and CHKP. Obviously, Calandra is hearing a real buzz in Israel about ROBO's memory chip and it's potential. The word in Israel is that the news release from ROBO recently about Siemens "renting space" at ROBO was basically a cover, and that Siemens is interested in and is helping develop the memory chip.
One of the other things this company has going for it the ownership in www.SwapStation. I really believe that this site and others like it are going to take business away from traditional auction sites like Ebay, and from the successful but basically illegal Napster for MP3's. In the area of copyrighted, proprietary material like music, the trend is going to be towards barter sites that facilitate the swapping of files, and away from sites that illegally act as a direct conduit. I also think Swapstation could be a success in the area of B2B service barter, which has been an established but not organized market for a long time. Some extremely influential Bay Area venture caps feel the same as I do, and they are starting to pour money into barter sites that are not half as sophisticated as Swapstation. See the San Francisco Chronicle article I posted for more info.
Finally, the memory chip news states that the new chip "may drastically reduce search time for data in computer memory and in databases on Internet servers, network servers and Internet search engines." I think it's a strong possiblity that ROBO wants to eventually integrate this chip with their internet venture cap initiatives.
For a microcap with a tiny float, that's a lot of irons in the fire. Worth a good position hold on a pullback. |
