$288.66
1.02 (+0.35%)
Intuitive Surgical, Inc. (ISRG)
CAPS Rating:
Manufacturer of da Vinci Surgical System, an advanced surgical system that provides the surgeon with range of motion and fine tissue control, previously possible only with open surgery while also allowing the surgeon to work through small ports.
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Intuitive is down more than 50% from its summer 2008 highs; but that's an opportunity. It is a monopoly in a rapidly developing field. Barriers to entry are high (patents, product development, and sales) and that places ISRG is a good place.
It is running about 30x forward earnings with a recent growth rate of about 60% and projections which are similar. When investors learn that ISRG isn't like all the others...they're likely to get a nice kick.
If the street is worried about a slowdown in sales, why doesn't ISRG form a leasing company and provide the financing from their cash horde. Not only would they make money on the lease but they would make money on the sale, on the disposibles, on the training and on the maintence. That is a better use of part of their cash (say $150 million) than investing it at low interest rates.