The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.
It's been a rough ride with MAKO Surgical recently. The company lowered its system sales and guidance numbers again, and the stock fell significantly. John and David are holding on to their shares, but they're not ready to buy more just yet. There will be an earnings call soon, though investors learned recently that CEO Maurice Ferre will take over the sales organization for the company. Part of the problem is that the sales force hasn't been able to move past the early-adopter customers and into the early majority customers, like big hospital systems. With procedures continuing to rise, the company will continue to collect more and more outcome data that can influence those more pragmatic customers. The trend for more knee and hip replacement surgeries is still there. And looking at Intutive Surgical's adoption rates, MAKO seems to compare well. There's still plenty of competition from Stryker, Zimmer Holding, and Johnson & Johnson's DePuy. But MAKO’s offering continues to resonate. John and David look forward to learning more about how the company is going to win the customers that will drive its next phase of growth.
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