When Momentum Dies…Thanks Softbank and Adios iRobot

It’s been mostly lollipops and balloons in my 8-80 list and my trend following accounts the last few years.

But, all good things come to an end.

Today I lost an old fave…iRobot.

The stock peaked at $105 a few months back on news that Softbank was taking a 5 percent stake. Turns out Softbank was the top tick. A nice start for their ‘Vision’ fund. Today it closed at $65. Softbank has lost a quick 40 percent.

It was one of my favorite stocks heading into 2017. The trend was good to me as I rode it from the 30’s. My last piece I parted with today is still up 100 percent. If you follow me here and on Stocktwits I was selling stock on the ride up as well.

The robot trade is just beginning but iRobot is no longer leading it.

If it gets past it’s highs one day I will revisit the stock.

Ivan posted this chart today of iRobot which shows how heavy the stock has been:

He also mentioned that he was at Target the other day and there were 6 robot vaccum cleaner products on the shelves and none of them was iRobot.

It turns out the robots are eating the robots and it’s only 2017!


Also published on Medium.