1. January 28 th 2013

2. Common Cents Investment Group January, 2013 Agenda  T-shirts!  Survey discussion  Today in the Market  Robotics and Biomedical discussion

3. Common Cents Investment Group January, 2013 Today in the Market

4. Common Cents Investment Group January, 2013 Today in the Market  http://www.bloomberg.com/video/the-top- ten-stocks-for-jan-28- KcCBO04SRZae4SLmmW~Bzg.html http://www.bloomberg.com/video/the-top- ten-stocks-for-jan-28- KcCBO04SRZae4SLmmW~Bzg.html

5. Common Cents Investment Group January, 2013 Today in the Market  Update on Dell  Up past $13/share  Next earnings date is: February 19 th, 2013  Low P/E ratio : 8.90

6. The Robotic Industry

7. Common Cents Investment Group January, 2013 Robotics  “The branch of technology that deals with the design, construction, operation and application of robots, and computer systems for their control, sensory feedback, and information processing.”  “These technologies deal with the automated machines that can take the place of humans, in hazardous or manufacturing environments”

8. Common Cents Investment Group January, 2013 Robotics Robot in a foundry Segway Military Style Robots  Intuitive Surgical Robot Robotics at Toyota 

9. Common Cents Investment Group January, 2013 Robotics  First read about it in the fourth December Kiplinger Letter of last year. In summary:  There is tremendous growth  Sales are expected to sky rocket  Technology changes  The uses are becoming more applicable to our lives and businesses  It’s becoming more economical to utilize robots

10. Common Cents Investment Group January, 2013 Growth  There are 1.4 million industrial robots deployed worldwide  Several million more for in-home use  2010  120,000 manufactured and shipped  2012  180,000 manufactured and shipped  50% growth in 2 years

11. Common Cents Investment Group January, 2013 Growth Three Ds Too Dirty Too DullToo Dangerous

12. Common Cents Investment Group January, 2013 Growth  Estimates say there will 210,000 in 2015  A total of ~ 16-million household robotics

13. Common Cents Investment Group January, 2013 Sales  Only 10% of potential industries utilize robots  Automobile industry are the biggest users Spot welding Frame assembly Coating and Paint Transportation Manufacturing Line & Supplies  Major automobile making nations average 1,260 robots for every 10,000 employees

14. Common Cents Investment Group January, 2013 Sales  Only 55 mechanical laborers per 10,000 humans in other manufacturing nations  South Korea & Japan remains leader in robot density 347/10,000 & 339/10,000  United States firms have ~ 135/10,000  By 2015, sales expected to grow about 11%

15. Common Cents Investment Group January, 2013 Technology Changes  Faster internet connections  Robots seek information & learn on the job  Acquire better models, in real-time  Cloud computing  Eliminate bulky processors  Better Micro-Processors  Cuts costs and increases efficiency  New materials

16. Common Cents Investment Group January, 2013 Technology Changes  Advanced sensors  Sense temperature, pressure, texture much quicker  Higher degree of accuracy  Replicate human hand  The “Human touch”  AI (Artificial Intelligence)  The act of learning  New algorithms  Smarter machines

17. Common Cents Investment Group January, 2013 Technology Changes  Nanotechnology  Robots small enough to enter the human body  Crossing into the biomedical industry  Also includes precise machining and drilling for nanosurfaces

18. Common Cents Investment Group January, 2013 Technology Changes  Teamwork  The ability to combine efforts and allow interaction  Carnegie Melon   Humans working side by side with robots

19. Common Cents Investment Group January, 2013 Uses  Packers, Couriers, and assistants  Walgreens and Toys”R”Us  Industrial Workers  Rivets, welds, lifting, etc.  Farming  Weeding, fertilizing, etc.

20. Common Cents Investment Group January, 2013 Uses  Medical  Clean out arteries, deliver drugs  Military  Drones, border surveillance, decoy soldiers, etc.  Roughly 35% of current aircraft are drones  Bumblebee-size scouts  Household helpers  iRobot, Windoro™, laundry folding, etc.

21. Common Cents Investment Group January, 2013 Economic Impact  Boost in productivity  Computers boosted output per hour of labor 1.6% in 1970-1995 to 2.6% in 1996-2005  New jobs (Over time)  Hard to imagine…  With a new industry, comes need for design, manufacturing, monitoring, fixing, etc.  New jobs in related fields

22. Common Cents Investment Group January, 2013 Economic Impact  New Jobs  More growth  More disposable income  More spending  More demand for goods  More demand for people to fulfill demand!  Not so painless…  Robots will displace thousands of jobs  China, Japan and South Korea may take largest hit  No need for labor  Manufacturing in the USA

23. Common Cents Investment Group January, 2013 Economic Impact  Investing in automation pays off  In 1990 an expansion would have cost a firm twice as much to automate (robots) than to fulfill with humans  It’s about equivalent today

24. Intuitive Surgical (ISGR) A quick peak at a stock…

25. Common Cents Investment Group January, 2013 Overview  Sunnyvale, CA  Da Vinci Surgical System  Less than 1,000 employees

29. Common Cents Investment Group January, 2013 ISRG  Currently dominate the medical robotic industry  Biomedical field is known as one of the most profitable fields for manufacturing  Christian discussed this with Atrion  Da Vinci product is revolutionary  Company estimates revenue growth of 21%- 23% year after year

30. Common Cents Investment Group January, 2013 ISRG  A lot of cash  $4.6B  Very high EPS (Earnings/Share)

31. Common Cents Investment Group January, 2013 ISRG  No outstanding debt  Investments  Short: $1.14B  Long: $1.6B  Risks:  High P/E ratio: 36.17  No dividend

32. Common Cents Investment Group January, 2013 Resources  http://seekingalpha.com/article/400941-my- 2-best-performing-stocks-of-the-last-year http://seekingalpha.com/article/400941-my- 2-best-performing-stocks-of-the-last-year  http://seekingalpha.com/article/1049421- intuitive-surgical-leads-the-pack-in-robotic- surgery

33. Common Cents Investment Group January, 2013 Membership  Cost is only $20 for the whole year!  Benefits:  Member of a very beneficial and informative club that will inevitably be valuable in your future  A network of friends who share a similar interest in investing and personal finance  A virtual portfolio challenge that will strengthen your confidence in investing

34. Common Cents Investment Group January, 2013 Membership  Make sure to check out our website for the presentations Monday night | ccig.osu.edu  Get on our Facebook page and like us! www.facebook.com/ccigosu

35. Common Cents Investment Group January, 2013 Questions?  Questions, comments or concerns?