Opinion on  iRobot Corp (IRBT)     Sector: Technology  >  Industry: Computer Services
Oversold

First off, at the time of this writing the stock was down at about $16.20 in extended hours trading--despite it showing as $19.09 by SocialPicks.  4Q06 revenue for IRBT was way up, as were gross profits.  But a quarterly net loss has sent the market running.  There was a near doubling of research and development for the quarter, and if you move this increase in R&D spending into income, the company would have posted a huge YOY net profit for the quarter vs. 2005.  I, for one, am glad to see a focus on R&D at iRobot.  To be a blockbuster company, they're eventually going to have to move beyond products like Roomba--R&D is the key to unlocking future value.  I'm in IRBT for future earnings--not 2006 or 2007 earnings.  People will likely soon forget the quarterly report and remember why they were in the stock in the first place.  Then it'll move back to the $18-20 range.