Intuitive Surgical: A Hidden Gem 20 comments
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- Q2 EPS $1.62 vs expectations of $1.27
- Revenue up 18.8 pct to $260.6 million
Intuitive Surgical Inc (ISRG) reported second-quarter earnings on Wednesday that blew past Wall Street expectations, as instrument and accessories revenue jumped, sending its shares up more than 14 percent. The maker of the “da Vinci” robotic surgical system posted a net profit of $62.4 million, or $1.62 per share, compared with a profit of $51.2 million, or $1.28 per share, a year ago.
Intuitive Surgical Inc has been a top pick at Beyond Trading with a Strong Buy rating on the stock and a potential upside before earnings to $170. Beyond Trading recently recommended to its subscribers a long position on the stock at $143.3 also mentioned on SeekingAlpha.com's “StockTalk”.
“I consider Intuitive Surgical a Hidden Gem neglected by Wall Street analysts during the recent stock market turmoil”, said Sergio Vieira, President & CEO of our company, Beyond Trading Corporation.
We are firmly believers in the Da Vinci technology, which uses precision robotics to replace a surgeon's hand and has a history of excellent patient outcomes in a variety of cancer surgeries, representing a substantial capital expenditure for hospitals. The older model costs about $1.6 million each, while the newer version costs as much as $2.25 million each.
The company raised its 2009 procedure growth estimate to 45 percent from its previous forecast of 40 percent growth. It still sees 35 percent growth in service revenue for the year.
Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased by our continued strong procedure growth and the positive market response to our new da Vinci Si system."
Intuitive ended the second quarter of 2009 with cash, cash equivalents and investments of $902 million, up $80 million from the previous quarter.
We are upgrading our upside from $170 to $225 based on most recent company earnings report. We consider Intuitive Surgical a hidden gem neglected by Wall Street analysts.
Disclosure: No position in Intuitive Surgical; recently recommended to subscribers at $143.3 on the long side
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This article has 20 comments:
This is truly an insightful and brilliant column.
It is up 67 points since we recommended it. If it was not a hidden gem it would not be up 67 points. Buy low sell high; no one told you to buy here near $210. If you do not like it do not buy it. We recommend to invest in good companies with unique competitive advantages. ISRG is one of them.
On Jul 23 02:11 PM logicalthought wrote:
> lol... A hidden gem??? This company has a market cap of nearly $8
> billion and a quick look at Yahoo finance shows 14 analysts are covering
> it.
>
> This is truly an insightful and brilliant column.
The company is a gem and is under followed because it has a relatively small float and no competitors putting it in a sector of it's own. But even more bullish there were 10 sells on the stock three days ago. Many of the firms that follow the company are small specialty boutiques such as Leerink Swan which are very well respected but not household names, and second rate brokerage firms. You will see upgrades and coverage initiation.
On Jul 23 02:11 PM logicalthought wrote:
> lol... A hidden gem??? This company has a market cap of nearly $8
> billion and a quick look at Yahoo finance shows 14 analysts are covering
> it.
>
> This is truly an insightful and brilliant column.
First, I have no position in the stock. I think the technology is great, and while the stock is pricey, I would never short a great company purely for reasons of valuation, especially as one could wake up one morning to find out that Medtronic or JNJ bought them.
Secondly, it's idiotic to call "hidden" a company with an $8 billion market cap, 98% of its shares in the public float, 14 covering analysts, a major Barron's cover story a few months ago and 92% institutional ownership.
capital constraints. And since it just bounced higher, I'll consider doing what my name implies. I get some of my best short ideas from articles with names like "hidden gems".
(ISRG) today reached $218 near our upside $225
We do not mind you sell short the stock. Our subscribers already made 75 points on the long side. We do not know what are you trying to prove here. The stock market (investors) proved us right. The article is named hidden gem and it was proven to be correct otherwise you would have not seen the stock shooting 75 points, the market cap of 8 billion came out AFTER the event
On Jul 24 09:08 AM LoveShorting wrote:
> Thanks to all for thoughtful discussion. For me, the clear argument
> is
> capital constraints. And since it just bounced higher, I'll consider
> doing what my name implies. I get some of my best short ideas from
> articles with names like "hidden gems".
I am in agreement, by and large, with logical thought. I have held a long position in ISRG since 2004. Beyond Trading seems to be (at least in my old eyes) a "johnny come lately" to the ISRG party. Many of the so called "analysts" that have followed the stock over the past year or two have been "off" on their predictions regarding sales and earnings.
The economic downturn, in it's manifestation of decreased capital spending amongst hospitals, is often cited as the reason that ISRG's sales and earnings would be severely impacted (according to many "analysts"). However, anyone with a third of a brain should be able to figure out that a device as powerful as the daVinci system will be: 1) amortized over a period of years, 2) bring overall costs down on a per patient basis (shorter stays, decreased morbidity, faster recovey times, etc.) , 3) have re-current revenue streams &, finally, 4) be subject to continuos improvements.
Dear Sir,
We're late to the party? that's awesome!!
Our subscribers are up 79 points on this one just considering the most recent entry and you say we are late to the party!!! Envy is not a good thing! And you had held a position in the stock since 2004 as you claim which had to be proven you should have sold it when we recommended it last year in the range $340-320 to buy back much lower as our savvy subscribers did
On Jul 27 07:34 AM speculari wrote:
> To All;
> I am in agreement, by and large, with logical thought. I have held
> a long position in ISRG since 2004. Beyond Trading seems to be (at
> least in my old eyes) a "johnny come lately" to the ISRG party. Many
> of the so called "analysts" that have followed the stock over the
> past year or two have been "off" on their predictions regarding sales
> and earnings.
> The economic downturn, in it's manifestation of decreased capital
> spending amongst hospitals, is often cited as the reason that ISRG's
> sales and earnings would be severely impacted (according to many
> "analysts"). However, anyone with a third of a brain should be able
> to figure out that a device as powerful as the daVinci system will
> be: 1) amortized over a period of years, 2) bring overall costs down
> on a per patient basis (shorter stays, decreased morbidity, faster
> recovey times, etc.) , 3) have re-current revenue streams &,
> finally, 4) be subject to continuos improvements.
In your article, you state that the device "...replace a surgeons hand".
A better way to state this would be to use the word ...augment or, enhance the surgeon's hands. The surgeon is in no way "replaced".
As to my trading in this stock, I have bought & sold it a dozen times since 2004. My first trade was about $24.50, and my statement to the effect of having a "long" position in this stock since 2004 was intended to summarize, not offer you a conclusion about my trading habits.
In looking back on SA, I could not find any references regarding your coverage of this stock prior to last year... hence my comment that you were a "johnny come lately". I'm indeed sorry if I offended you... but, nonetheless, you do seem to be a trifle oversensitive and, as well, the manner in which you are "crowing" about ISRG might give one the idea that you were the only people on the planet that had discovered this particular stock.
We can prove the stock was recommended as a buy at $97 and $143 recently up to $232. It is natural you do not find references in seekingalpha.com since we have 1 month on the site but obviously you did not make any research. Our services to retail investors is very limited and it is not our focus. As for the rest you can read the next article on ISRG
On Jul 27 09:48 AM speculari wrote:
> Beyond Trading,
> In your article, you state that the device "...replace a surgeons
> hand".
> A better way to state this would be to use the word ...augment or,
> enhance the surgeon's hands. The surgeon is in no way "replaced".
>
> As to my trading in this stock, I have bought & sold it a dozen
> times since 2004. My first trade was about $24.50, and my statement
> to the effect of having a "long" position in this stock since 2004
> was intended to summarize, not offer you a conclusion about my trading
> habits.
> In looking back on SA, I could not find any references regarding
> your coverage of this stock prior to last year... hence my comment
> that you were a "johnny come lately". I'm indeed sorry if I offended
> you... but, nonetheless, you do seem to be a trifle oversensitive
> and, as well, the manner in which you are "crowing" about ISRG might
> give one the idea that you were the only people on the planet that
> had discovered this particular stock.
In case you're interested to read this was published a few hours ago when ISRG was near $232 seekingalpha.com/insta...
On Jul 30 11:52 AM Beyond Trading wrote:
> Dear Sir,
>
> We can prove the stock was recommended as a buy at $97 and $143 recently
> up to $232. It is natural you do not find references in seekingalpha.com
> since we have 1 month on the site but obviously you did not make
> any research. Our services to retail investors is very limited and
> it is not our focus. As for the rest you can read the next article
> on ISRG
I will leave you to your own devices. Beyond trading, I wish you well.
You're that type of individual that registers in websites like SA just to bash serious companies or give negative ratings to our comments. Seriously, you represent that type of individual no one serious in this business wants as a follower. You're much better reading Barrons, the local newspaper or watching those Cramer TV shows late at night. The number of your comments and the date you registered in SA tells everything about your intentions.
On Aug 30 08:20 PM Search4Truth wrote:
> Arrogance and bluster is all I have been able to discern. And a website
> that will waste your time running you from one marketing sign-up
> screen to another. You've already wasted too much of my valuable
> time.
Beyond Trading Accounts to me
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