MAKO Surgical Corp. (NASDAQ:MAKO)
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Mako makes a robotic surgical system for knee and hip arthoplasty procedures.
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Mako makes a robotic surgical system for knee and hip arthoplasty procedures.
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This stock is a folly and a failure of an investment, unless you are a short seller. I think that Motley Fool David is just that for recommending this as a rule breaker stock, when early adoption of this system has such high risk. For those who took the endorsement of this stock into their portfolios, like I did, I offer sincere condolences for your losses. It creates quite a hole in the annual return on the whole portfolio to have suffered such a loss.
Well best thing to do is buy some shares on the cheap now and hold the shares until the share price goes back up over the next few years as it will. I believe the best days are ahead for Mako Surgical.If an investor has a long time horizon not a short time view towards holding a stocks shares then a person can make profit from MAKO shares.I know the companies who have done business with MAKO Surgical have been very happy with the products they have bought and have done further business with MAKO Surgical. If a person is a short term investor by all means pass MAKO Surgical by for now however if a person is a long term investor a person might like to pick up some shares in MAKO Surgical on the cheap whilst they still can.
The thing to remember here is MAKO Surgical is MAKO Surgical not Intuitive Surgical which it has been dressed up to be now for some time now. The reason MAKO Surgical share price shot up like it did was because it was hyped up to be the next Intuitive Surgical which it is not. The other thing to remember here is the USA is close to another recession if it is not back in one again. This means businesses are cutting back on their expenditures in case the business climate becomes a lot tougher than it is right now. This means businesses like MAKO Surgical are having a hard time trying to sell their robotic machines at approximately 1 million dollars as which ever way you look at it this is a lot of money when you are trying to watch your budget. If MAKO Surgical can prove to medical institutions their robotic machines can save them money over the long run not the short term MAKO Surgical will improve.
A loss does make the investment a folly or a failure. The disappointment in the last two quarters is certainly worth watching as an investor, but to the best of my knowledge has not been due to problems with the product, competition, or malfeasance in management. Adoption of a new technology or medical procedure is often biphasic -- early adopters...pause...general adoption. The main issue with the recent investor loss is that it was valued at a very high premium prior to drop to current price (high 40's down to low teens), as many of RB investments are. In the $30-40/share range it was a high risk investment. Risk is less to continue to hold, but a red thumb indicates you expect it to go lower from here. That would certainly happen if a major product failure, competitor emerged, or if management failed to execute; so far no indication of that happening.
FM
If I was a betting man, I'd guess you aren't an actual RuleBreakers subscriber (so can't see information about the recommendations like the dates, cost basis, rationale for investment, when to sell, and various other updates).
In any case, your red thumb pitch tastes of the bitterness and disappointment of an emotional investor who got hurt and bailed all too late after short-term worries horrified them.
Yes, I'll admit MAKO disappointed investors with terrible sales and revising guidance downward. Yes, it hurts (badly!) to lose money in any investment. Yes, MAKO could drop further if their sales lull persists for another quarter or more. However...
No, I'm not convinced this is a long-term problem. Procedure growth remain robust, which means surgeons continue to use the systems they have purchased. The hospitals who have already purchased, then, are hooked, and I believe it's only a matter of time until the rest of the medical world catches on and follows suit.
If it wasn't already obvious, I'm (still) long MAKO.
When investing in highly volatile, early mover investments, patience and risk tolerance are important variables. One of my best all time investments had at times been down by 40% or more from origninal purchase price. However, my confidence in the company, long term outlook, and dollar cost averaging turned that stomach twisting loss into a large position and solid CAGR over an 8 year period. I'm not saying MAKO will provide the same returns but your bear arguement needs more than ... I lost money.
I don't know about the original poster but I am a RB subscriber. I do think MAKO is promising long term and am holding my shares but I also think naming it as a best buy at 43 and again at 26 has not proven to be a good call.
At the hospital where I work, Mako's knee replacement's are failing at a high rate. Surgeon's and patients have other choices that are safer.
Otter52