iRobot Corporation (IRBT), The Boeing Company (BA): Are Terminator Robots the Future of Warfare?

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How can patriotic investors save military lives and employ thousands of skilled American workers for the betterment of the U.S. economy? This article will focus on 3 dynamic U.S. defense companies.

Military spending

The U.S. spends more on defense than any other sector, with the exception of Social Security. According to the Department of Defense (DOD), President Barack Obama requested a base budget of $671 billion for 2012. The proposed amount included $553 billion to fund defense programs and $118 billion to support overseas contingency operations (OCO,) primarily in Afghanistan and Iraq.

Small company big military orders

iRobot Corporation (NASDAQ:IRBT) is in the process of fulfilling the following military contracts from 2012 thru 2015: the manufacturing of 68 models of the 310 Small Unmanned Ground Vehicle (SUGV) for the U.S. Army. Last June of 2012, 138 robots with spare parts were delivered totaling $24 million.  The Navy also awarded a $28.8 million contract for the Man Transportable Robotic Systems (MTRS) used for bomb disposal.

However iRobot Corporation (NASDAQ:IRBT) has not only focused on the military sector; it has diversified into the consumer sector. iRobot Corporation (NASDAQ:IRBT)’s catch phrase is, “Robots that make a difference“, and they certainly have. Roomba is the best known in a growing consumer series of robots that perform everyday household functions, like vacuuming, floor washing, pool and gutter cleaning. There is a growing opportunity for robots specifically designed with the consumer market in mind.

This company aims to win in the consumer sector. Consumers are always looking for ways to reduce time on household chores: Not long ago the washer, dryer, and dishwasher was space age technology, now every home has these appliances now. iRobot Corporation (NASDAQ:IRBT) intends to bridge the gap between robots and everyday use in the home for the consumer’s convenience in the 21st century. Imagine investing in the first washer and dryer company in the 20th century; this company definitely has a long term forecast.

The Boeing Company (NYSE:BA) and iRobot Corporation (NASDAQ:IRBT) collaboration

The innovation of iRobot Corporation (NASDAQ:IRBT) attracted the attention of The Boeing Company (NYSE:BA) back in 2007 to help develop the next generation SUGV. The Boeing Company (NYSE:BA) is the second largest defense contractor in the world, on the back of a diversified non-military aviation business. iRobot Corporation (NASDAQ:IRBT) teaming up with The Boeing Company (NYSE:BA), the giant in the Defense sector, can only mean good news for higher EPS and long term growth.

Second largest defense contractor invests in robots

Northrop Grumman Corporation (NYSE:NOC), like iRobot, is another major player in the unmanned ground vehicle arena. Northrop Grumman Corporation (NYSE:NOC)’s ground vehicle business is established in Coventry, U.K. where the company develops and manufactures unmanned drones. The Cutlass EOD platform by Northrop Grumman won an 80 vehicle contract back in 2006. There are currently more than 2,000 unmanned ground vehicles operating around the world today, manufactured by this company.

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