Intuitive Surgical, Inc. (NASDAQ:ISRG)

FEELS LIKE P/E IS A BIT HIGH, SO JUST START BUILDING THE POSITION HERE, BUT THIS IS A LONG TERM HOLD

This one is for you weiwentg:

http://caps.fool.com/Blogs/ViewPost.aspx?bpid=142021&t=01000275936506252084

A true rule breaker

Good moat
increasing procedure volume
reasonable price

Anything in the Medical field will grow. I currently work in this field; we add 10-15 new patients a day to our alreadly bulging patient list.

Good Technology

ISRG is poised to reach that $300 level by early 2010. At this price it's a takeover target. Maybe JNJ???

mf pick

Surgeons don't cut costs

Profitable, growing fast, good balance sheet, hard market for competitors to enter, demo cardiac surgery shows big potential improvements to patient recovery time and potential to dramatically increase market for machine use

Current stock price and estimates doesn't adequately account for growth potential into new fields, and estimates are still pretty good.

The da Vinvci Surgical System is safer, less invasive, and more accurate than traditional surgical methods. With the aging of America, and the financial crisis that is slowly wiping out most of our assets, everyone, including the government, will be looking for ways to cut expenses. Medicare, in particular, and surgical candidates in general, will be pushing surgeons to use this technology.

Robotic surgery is the future. This company seems to have a solid product with good patent position and little competition. Current concern seems to be capital spending by hospitals. This may damp their sales a bit short-term but I don't think that will last long. I think the market has over-reacted to the downside here.

target 161

I know this stock saw insane growth up to 2008, but right around the time they tanked I was getting excellent reports about their technology and their inability to keep up with demand. Long term this company could set the pace for automated medical treatments and supporting technology.

Robotic surgery is the future. Whether ISRG is ultimately the Microsoft of the industry is yet to be seen, but it certainly has a good start, with an approved and used product in a market that is notoriously hard to break into with a high level of regulation, etc. If nothing else, they will be a good takeover target by a JNJ or other large medical company at a decent premium.

Disclosure: I recently purchased ISRG shares at close to 52 week low.

Hospital budgets may impact revenue growth this year (2009) but otherwise the business model and management of this company should ensure years of nice returns.
I expect that ISRG will use the current weak market to buy compatible companies (e.g. HNSN).

With hospitals charging 300 bucks for a mucus control system (box of kleenex) - They can afford cool robot toys.

Not so good now for short term gains, but overall a good stock for medium to long term. I'm mostly scalping at the moment so it's not a stock I'm buying. If you are looking medium to long term though, jump on this one.