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New Idea: Adept Technology (ADEP)

(Originally published 3/17/2015; Adept was recently acquired by OMRON for $13/share, 100% premium from our initiation PPS)

Adept is a leading provider of intelligent vision-guided industrial robotics systems and services. The company offers both industrial fixed station and mobile robots which allow for improved speed, quality and efficiency in manufacturing/production environments. The company serves high-growth markets including packaged goods, life sciences, electronics, as well as machine tool automation and automotive components. Adept helped pioneer the robotics industry after incorporating in 1983 and is a widely known, leading brand for those seeking technology in automated applications and processes. Management was overhauled in 2013 which has led to a more invigorated and focused team. Rob Cain, CEO, and Seth Halio, CFO, both have the experience as well as 18+ months under their belt with the company to now drive results. The company is laser focused on three areas – market share growth in fixed robotics, growth in mobile robot adoption, and overall margin expansion. Results to date have been lumpy but we’re confident in their underlying technology position and motivated team that is in place. Industrial robotics is a long-term growth theme that supports the company’s advantaged position. The company is a key participant in a $10 billion market, growing 10%+ annually, for industrial robots that can handle materials better than humans. As long-term investors, we think the company can made tangible strides forward in 2015, and this execution will translate to a higher valuation of the company.

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