1 Stock the Shorts are Wrong About

The following video is part of our "Motley Fool Conversations" series, in which health-care editor/analyst David Williamson and industrials editor/analyst Brendan Byrnes discuss topics across the investing world.

In today's edition, David and Brendan take a closer look at two highly shorted healthcare companies with high short interest and discuss whether the shorts" have it right. Medical Equipment makers MAKO Surgical and Hansen Medical find themselves with alarmingly high short positions; 33.5% and 25% of each companies' respective floats. But, are the shorts right to wager so heavily on these companies and their game-changing technologies? Watch and find out.

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Brendan Byrnes has no positions in the stocks mentioned above. David Williamson owns shares of Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson and MAKO Surgical. Motley Fool newsletter services recommend Intuitive Surgical, Johnson & Johnson and MAKO Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (4) | Recommend This Article (8)

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  • Report this Comment On February 29, 2012, at 11:30 PM, jdwelch62 wrote:

    David is right; the shorts have got it wrong. MAKO has great procedures that are beneficial to the patients in so many ways, & they've got a great business model. I think it's just a matter of a couple more years of good, solid sales & they will hit a tipping point where demand will heat up & sales will take off. I bought, gonna hold & hope I can buy more sometime soon before they take off... :-)

  • Report this Comment On March 01, 2012, at 9:39 AM, Borisbmx wrote:

    i agree with jd. the market is gonna expand, and if the competition doesnt hog the opportunity, mako should do well.

  • Report this Comment On March 01, 2012, at 9:48 AM, GW1000 wrote:

    What competition are you refering to?

  • Report this Comment On March 01, 2012, at 10:06 AM, Borisbmx wrote:

    lets see the companies that have a $8 billion stake in the business. don't expect them to sit back and do nothing.

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