4-Star Stocks Poised to Pop: Intuitive Surgical

• Report this Comment On May 13, 2009, at 11:32 AM, pondee619 wrote:

  Brian:

  Do we have the "poised to" CAPS player yet?

• Report this Comment On May 13, 2009, at 11:48 AM, catoismymotor wrote:

  Not to mention that ISRG and IRBT have been inducted into The Robot Hall of Fame. I'm not jerkin' your chain. Click below.

  http://www.engadget.com/2009/05/11/robot-hall-of-fame-expand...

• Report this Comment On May 13, 2009, at 12:19 PM, woodszilla wrote:

  Are you really running this article right after the stock has run up 60% in the past month?? I would expect it's poised to drop before it pops.

• Report this Comment On May 14, 2009, at 12:18 PM, PauvrePapillon wrote:

  If you’re looking for a rule-breaker and attracted to medical device stocks that have performed well lately, why not take a look at Accuray (ARAY)?

  When the market (correctly) understood that CyberKnife was a truly unique and revolutionary technology, investors bid Accuray’s post-IPO shares up to an intraday high of $31.09 (9 February 2007). As Varian and others made repeated claims, in numerous press releases, interviews and conference calls, that their gantry-mounted machines could do the same thing as the robotically controlled CyberKnife, Accuray’s market cap shrank even though its economic fundamentals actually improved.

  On 6 December 2008, Accuray, finally, fired back with the release of two animated videos that effectively demonstrate what CyberKnife is and why it is fundamentally different from gantry-mounted radiation sprayers. You can see them for yourself at http://www.accuray.com.

  Since then, Accuray shares have gone up 35 percent (as of close of market Wednesday 13 May 2009) while Varian has gone down 13 percent, Tomo had dropped 24 percent, the DOW has lost four percent and Intuitive Surgical (up 10 percent) has essentially tracked a NASDAQ index that had gained 11 percent.

  As for ISRG’s 4-Star CAPS rating, that’s great but it doesn’t really compare to Accuray’s 5-Star CAPS rating with 152 out of 158 All Star Players rating ARAY to outperform and 482 out of 500 players overall in agreement.

  You can quibble over Accuray’s management compensation plan, and it has hurt the company in terms of meeting or exceeding EPS expectations, but, in a very difficult market, they just reported record revenues, a decent 15 new CyberKnife orders added to backlog and net positive cash flow of $2.5 million. They continue to operate with no debt and a cushion of $157 million in cash and investments. This is company both well positioned to weather this economic storm and take off in a big way once the clouds clear.

  http://caps.fool.com/Ticker/ARAY.aspx

  You might still be able to make some money with Intuitive Surgical but with Accuray you have a serious candidate for a multi-bagger in the making whose underlying technology is still in the early stages of its adoption curve. Peter Lynch would rate ISRG a hold (and he would already own it) and call ARAY a buy (and would be adding to his position).

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