iRobot Corp (NASDAQ:IRBT)

Over the past couple of years, iRobot Corp. (IRBT) has been working hard to build new robotic devices that people use in their homes.

The products have been great, as you would see just by visiting my parents’ home. But the stock hasn’t reflected this success.
That’s good news for us, though, because signs indicate that IRBT is now a potential buyout target.

In fact, it would make perfect sense if one or more big tech companies were thinking about making a bid.

So I suggest setting yourself up to get ahead of the news… locking in a chance at big gains when a deal comes through.

Take a look for yourself.

Big Data Wants Your Floor Plan

This year when at the Consumer Electronics Show (CES) in Las Vegas, once again impressed with iRobot's booth.

The company showcased many of its robots, including machines that sweep and mop your floor, clean your pool and even wash your windows.

While the hardware — the little robots that scoot around your house — was certainly impressive, I was more excited about the digital apps that came with these robots.

You see, a Roomba that cleans your floor doesn't just move around and randomly bump into walls and furniture anymore.
It literally maps out your entire floor plan, then systematically cleans your home room by room.

Once the Roomba has had a chance to scan your entire home, it sends a digital map to your smartphone. From there, you can tell the Roomba which areas you want to clean and block off areas of a room that you want to be "off limits."

Now think about how valuable these data could be to other companies…

Google could use this floor plan to tell you exactly how many smart cameras to put in your house for security systems. Or where to best set up a smart speaker.

Amazon could learn what type of flooring you have and suggest the best cleaning solutions… Or maybe sell you a side table to put in that empty spot your Roomba noticed when cleaning.

It could happen, because the big tech companies like Facebook, Amazon, Google and others are about much more than just providing you with their services. They are also very interested in collecting data to know how your home operates and how they can make more money from you!

It definitely makes one think twice about bringing one of these robots into my home.

But as a buyout deal, iRobot looks like a perfect match for a social media or big tech company!

Indications are that negotiations for a giant buyout deal may already be underway!

There has been a spike in options activity, which often precedes a big buyout announcement. It could mean that someone behind the scenes knows that negotiations are taking place and is building a big options position to profit from a deal.

Given the tremendous value that IRBT would bring to a company like Google or Amazon, I’d expect this deal to have a very high price tag. In fact, I'd expect a big tech company to pay at least $90 per share — close to where IRBT was trading last year before the trade war with China caused the company's sales to slow.

With a $90 buyout target, there's plenty of room for us to lock in a tremendous profit once this deal is announced. So let's set up our different tiers for playing this opportunity.

Meet George Jetson.
His Boy Elroy.
Daughter Judy.
Jane his wife.

Yes, that is my entire pitch.