Seeking Alpha

Citron Research steps-up assault on Intuitive Surgical

  • On the heels of last week's "follow up" bear piece, Citron Research pens an open letter to Intuitive Surgical (ISRG +4.5%).
  • Citron alleges "gross misuse" of the FDA's MAUDE dataset (the subject of last week's report) in a chart published on ISRG's corporate website.
  • Here is one of Citron's "stand out" points: ISRG's "computation and graphing comparison of MAUDE adverse event rates is misleading [because] it is extremely unlikely that FDA AERs on surgeries outside the U.S. will ever be filed. Nevertheless, [ISRG] chooses as a denominator 'completed worldwide surgical procedures.'"
  • Citron also says September's MAUDE reports show "another 102 injury-type reports and another four death-type reports, [exceeding] August's record high, which was itself four times any previous reporting period in the company's history."
  • Full letter
Comments (7)
  • Bill Maurer
    , contributor
    Comments (4596) | Send Message
     
    And yet another firm was positive on ISRG today, which is why the stock is up 4.5%! I personally would avoid for now.

     

    http://seekingalpha.co...
    7 Oct 2013, 03:45 PM Reply Like
  • tombo
    , contributor
    Comments (249) | Send Message
     
    If your time horizon is the next earnings call, then yeah, avoid. There is risk it could disappoint expectations over the next few quarters.

     

    If your time horizon is 3 or more years, then there's no reason not to buy some today. And if the earnings turn out better than expected, you probably won't get another chance to buy at these levels. If it does wind up dropping more, you can always add to your position.

     

    Long term, ISRG is a winner.
    7 Oct 2013, 04:00 PM Reply Like
  • Gary J
    , contributor
    Comments (3576) | Send Message
     
    There you go - somebody that has the short and long term already all figured out. Must have a crystal ball.
    7 Oct 2013, 04:44 PM Reply Like
  • tombo
    , contributor
    Comments (249) | Send Message
     
    Well, I can't predict the patterns for hospital spending in the short term, especially with the unknown fallout from the new healthcare law. So there may be some lumpy numbers coming which will hit the stock price. This is nothing new for ISRG, they've always had volatile earnings.

     

    But if you believe that robotic surgery is the future of surgery, how can you not like ISRG for long term? They own the robotic lapro market and will continue to own it for the foreseeable future. Nothing in the Citron report or any other negative article changes my views on that.

     

    At today's prices, they are cheaper than they have been in many years, so why not buy today? I don't see much risk if you're holding for the long term.
    8 Oct 2013, 03:15 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    I bought $MZOR instead a while ago. Up 40% on the average probably fuled by good company + MAKO buyout type speculation.
    7 Oct 2013, 03:56 PM Reply Like
  • jazzfan1
    , contributor
    Comments (84) | Send Message
     
    Congratulations, how do you get informations about that small company?
    ISRG seems too dangerous the next year or so...
    7 Oct 2013, 05:25 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4059) | Send Message
     
    Was a tip by Dr. Kris when this was still trading OTC. Bought then, sold, and now bought again when it went on US exchange. I really like what they do but the current run is getting a bit scary. I read whatever I find about companies I invest in.
    7 Oct 2013, 07:07 PM Reply Like
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