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No time to brag...gotta go to a baseball game. But I did it again. Today I sold ISRG at $377.80. That's a 16% gain over my purchase price of $324.33 back on Feb 10, 2010. That means I made this great gain in only a little over 2 months.
Did you do that? You? YOU? YOU???
I am HUGE!!
Bring me your finest meats and cheeses...if you want more picks you have to tell me how great I am and I will send you more picks...more picks...more monies from $$$MR. MARKET$$$
If you made out on this one, don't forget:
www.dereksdreams.com
================================================== ======================
02-10-2010, 04:51 PM
mrmarket 
Administrator
Join Date: Sep 2003
Posts: 3,430
ISRG ==> The Wanna Go to Florida Winner!
Yea..I get it. Famous painting. Whatever. I am sure Mona Lisa would have been a smash on the TV Show “Jersey Shore”.
Let’s face it, we really can’t project Leonardo da Vinci into the 21st century. He would have been a total loser. However when it comes to medicine, things are different.
The da Vinci® System consists of an ergonomic surgeon console or consoles, a patient-side cart with four interactive robotic arms, a high-performance vision system and proprietary EndoWrist® instruments. Powered by state-of-the-art robotic and computer technology, the da Vinci® System is designed to scale, filter and seamlessly translate the surgeon's hand movements into more precise movements of the EndoWrist® instruments. The net result is an intuitive interface with breakthrough surgical capabilities. By providing surgeons with superior visualization, enhanced dexterity, greater precision and ergonomic comfort, the da Vinci Surgical System makes it possible for more surgeons to perform minimally invasive procedures involving complex dissection or reconstruction. This ultimately has the potential to raise the standard of care for complex surgeries, translating into numerous potential patient benefits, including less pain, a shorter recovery and quicker return to normal daily activities.
The da Vinci robotic operating system brings the excellence of the old master to your surgeon today. Well that's not exactly true. However, Intuit Surgical has revolutionized surgery with a remote robotic system that allows your surgeon to perform surgery more safely with fewer complications. The system has impressive results in maintaining function following prostate surgery. The works ....work. Da Vinci robots can make small, precise incisions and get into tight spaces better than human doctors, who control its four or six arms from a console nearby.
The surgeon of the 21st century has grown up with play station and the da Vinci system capitalizes on this manual dexterity and allow the youthful gamer to become the master surgeon of tomorrow. Hospitals that have the system use it as a marketing tool to draw patients to the facility.
Today I bought stock in Intuitive Surgical (ISRG) at $324.33/share. I will sell it in 4 to 6 weeks at $374.21/share. Here’s why I like ISRG:
This chart has awesome price momentum fueled by relentless earnings growth. It’s a rock star story that has defined all of the boo hoo hoo affiliated with the recession and Obama’s health care theatrics.
Intuitive Surgical, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of da Vinci surgical systems for use in urologic, gynecologic, cardiothoracic, general, and head and neck surgeries.
Intuitive Surgicals da Vinci Surgical System enables minimally invasive surgery that overcomes the trauma faced by patients in open surgery. Minimally Invasive Surgery is becoming increasingly popular in helping patients reduce recovery time, thereby saving hospitalization costs.
Intuitive Surgical generates recurring revenue through its razor/razor blade business model. The model ensures that the company keeps on generating revenues following the initial sale of the da Vinci Surgical System. Just like when you buy a printer for your computer. You think you get a good deal on the printer, then you have to pay out the wazoo for ink the rest of your life and you have to keep changing the ink every 5 seconds. I always run out of Magenta, you? Anyway, this enables the company to have a regular stream of income even in these testing times. Furthermore, Intuitive Surgical operates in a niche market with no direct competition. In June 2003, Intuitive acquired its only direct competitor, Computer Motion. The company uses a unique technology that reinforces its competitive advantage.
Increased adoption of the da Vinci Surgical System resulted in consistent top-line growth. In the most recently reported quarter, a greater number of surgical procedures were performed using the da Vinci Surgical System. This had resulted in higher Instruments & Accessories revenues. ISRG will continue growing revenues in this segment in future. Intuitive Surgical keeps on innovating new technologies for its Surgical Systems. The company introduced a new da Vinci Si Surgical System with additional features that improves the efficiency of surgeons in operating rooms. The new features include: higher visual performance that enhances surgeons efficiency and shortens procedure time; a simplified and user-friendly interface that reduces surgeon workload during surgery; a dual surgeon console that allows a second surgeon to view the same surgery as the primary surgeon, thereby enabling collaborative surgery.
Hey surgery is no fun. I had unbilical hernia surgery and I couldn’t lift weights for 6 months. I turned into an endomorph. Fortunately I am back at it and am benching 315 lbs for reps like it is paper. The da Vinci system delivers better outcomes with less blood loss and pain, resulting in quicker healing times. That in turn helps hospitals rein in rising medical costs, which are at the heart of the U.S. health care debate. Using the da Vinci, average hospital stay is reduced from 5.2 days for open to 1.7 days with da Vinci.
ISRG enjoys a much greater advantage over its customers. Once a hospital has bought and installed its machines, its doctors and staff must continue to buy and use the associated surgical supplies. Switching to a rival's systems would be expensive and time-consuming for a hospital currently using Intuitive's devices. That advantage may help explain Intuitive's amazing performance -- it's averaged more than 50% annual returns over the past five years.
Like I said, ISRG has been able to beat expectations quarter-over-quarter in a difficult soft demand market which is exacerbated by restricted credit. Still the hospitals are out there buying up the da Vincis. Do you take your car to a car wash that has brushes that scratch your vehicle? Why would you take your body to a hospital run by Fred Flinstone and Barney Rubble? New technology sells and this is a way for the premier hospitals to differentiate themselves.
All of this good news comes with a grain of salt. ISRG is expensive. Not just its stock price, but its PE (around 54). Well the stock is up 289% over the last 52 weeks. Of course it’s expensive, but its not overpriced. You want to eat steakey wakey at Peter Lugers, you pay.
Brilliant minds like mine don't worry too much about the PE ratio. This company has fertile fields to grow as they transform very difficult complex medical procedures into procedures that are much less traumatic than before. Not only do patients get the benefit of accuracy, efficacy, and smaller incisions, they also recuperate faster. If you wish to be a surgeon in the future begin studying it on one of these systems.
Seldom is there an emerging technology with such strong market dominance (monopoly), profitability, acceptance, and growth with such a high barrier to entry (medical approvals and robotics thresholds) and such a clear benefit to humanity. What could be better than being able to write your name in the snow when you are 60 yrs old after a prostate operation?
The company is looking to build on the 205,000 procedures that were performed on its machines last year with a 35% growth in procedures this year. That pays for a lot of “House” episodes and the resale revenue from instruments is growing like crazy. They are also selling a lot of equipment to hospitals that already have da Vinci systems….which means the stuff works great and you have satisfied customers.
It’s all about the mayonnaise though. How does all this good news translate to earnings?
Last month they reported fourth quarter of 2009 revenue of $323.0 million, up 40% compared with $231.5 million for the fourth quarter of 2008. Fourth quarter of 2009 revenue growth was driven by continued robotic procedure adoption and higher da Vinci Surgical System sales.
Fourth quarter of 2009 net income was $77.6 million, or $1.95 per diluted share, compared with $50.8 million, or $1.27 per diluted share for the fourth quarter of 2008. Earnings gained 54% to $1.95 a share, beating Wall Street ANAL-yst views by 24 cents.
Revenue for the year ended December 31, 2009 totaled $1,052.2 million, increasing 20% from $874.9 million for the year ended December 31, 2008. Net income for the year ended December 31, 2009 was $232.6 million, or $5.93 per diluted share, compared to net income of $204.3 million, or $5.12 per diluted share for the year ended December 31, 2008.
We all know what it did, so what will it do? ANAL-ysts say that ISRG will earn $7.69/share on $1.33 Billion in revenue in 2010. That’s actually not a bad prediction. $$$MR. MARKET$$$ sees revenues at $1.35 billion and associated earnings of $7.86/share. If you take my earnings projection of $7.86/share and multiply it by today’s PE ratio of 54, you get a share price of $424.44/share which is well past my sell price. So…there you go.
What does the head surgeon say?
Gary Guthart, President and CEO of Intuitive Surgical, said, “We are pleased with the performance of our team in the fourth quarter, our procedure growth, and as a consequence, our financial results. Led by outstanding patient outcomes, robotic surgery adoption with patients and the medical community at large continues to grow.”
And from the CFO:
“Let me summarize our results for 2009. Total procedures grew by 51% compared to 2008 to approximately 205,000 procedures. Total 2009 revenue was $1.052 billion, up 20% compared with $875 million last year. Recurring revenues, driven by procedure growth, an increase of 34% compared to 2008."
And here is a quote from a satisfied customer:
“Our first patient is Mr. Dale Gayan, a patient of Dr. Brian Golden at – of Summerlin Hospital Medical Center in Nevada. Quote, "This is my note to – my thanks to Dr. Golden for saving most of my left kidney. My story is a little unusual, since I had already lost my right kidney to cancer in 2002. That whole kidney was removed in a traditional operation through a long "shark bite" that was awfully painful and took several months to recover from. Recently my doctor found the new tumor in my left kidney, the only one I have left. I was scared I would need this kidney removed, then be hooked up to dialysis for the rest of my life.
The urologist who took out my right kidney years ago recommended Dr. Brian Golden. My primary doctor rated Dr. Golden as "excellent" which, of course, influenced my decision, but the deciding moments were when I actually met and discussed my case with Dr. G. He showed me my CAT scan and the tumor. He described the operation using the da Vinci robot, robotic-assisted partial nephrectomy, and showed me how much of my kidney could be saved. He had a very reassuring bedside manner, was confident but not arrogant, and answered all of my questions. He made me feel comfortable that I had found the right surgeon for my terrifying situation.
The surgery went great. My kidney was working just as well after surgery as beforehand. The few little incisions weren't very painful and I was out of the hospital in just a day and a half. When I saw Dr. Golden after surgery, he said the pathology report said all the cancer was removed. My primary care doctor was absolutely amazed at my speedy recovery and the difference in my incisions for the right and left kidney operations,"
That says it all. If you like this stock, and end up making some money on it, please remember Dereks Dreams: www.dereksdreams.com
I am HUGE!! Bring me your finest meats and cheeses.
$$$MR. MARKET$$$
Did you do that? You? YOU? YOU???
I am HUGE!!
Bring me your finest meats and cheeses...if you want more picks you have to tell me how great I am and I will send you more picks...more picks...more monies from $$$MR. MARKET$$$
If you made out on this one, don't forget:
www.dereksdreams.com
================================================== ======================
02-10-2010, 04:51 PM
mrmarket Administrator
Join Date: Sep 2003
Posts: 3,430
ISRG ==> The Wanna Go to Florida Winner! Yea..I get it. Famous painting. Whatever. I am sure Mona Lisa would have been a smash on the TV Show “Jersey Shore”.
Let’s face it, we really can’t project Leonardo da Vinci into the 21st century. He would have been a total loser. However when it comes to medicine, things are different.
The da Vinci® System consists of an ergonomic surgeon console or consoles, a patient-side cart with four interactive robotic arms, a high-performance vision system and proprietary EndoWrist® instruments. Powered by state-of-the-art robotic and computer technology, the da Vinci® System is designed to scale, filter and seamlessly translate the surgeon's hand movements into more precise movements of the EndoWrist® instruments. The net result is an intuitive interface with breakthrough surgical capabilities. By providing surgeons with superior visualization, enhanced dexterity, greater precision and ergonomic comfort, the da Vinci Surgical System makes it possible for more surgeons to perform minimally invasive procedures involving complex dissection or reconstruction. This ultimately has the potential to raise the standard of care for complex surgeries, translating into numerous potential patient benefits, including less pain, a shorter recovery and quicker return to normal daily activities.
The da Vinci robotic operating system brings the excellence of the old master to your surgeon today. Well that's not exactly true. However, Intuit Surgical has revolutionized surgery with a remote robotic system that allows your surgeon to perform surgery more safely with fewer complications. The system has impressive results in maintaining function following prostate surgery. The works ....work. Da Vinci robots can make small, precise incisions and get into tight spaces better than human doctors, who control its four or six arms from a console nearby.
The surgeon of the 21st century has grown up with play station and the da Vinci system capitalizes on this manual dexterity and allow the youthful gamer to become the master surgeon of tomorrow. Hospitals that have the system use it as a marketing tool to draw patients to the facility.
Today I bought stock in Intuitive Surgical (ISRG) at $324.33/share. I will sell it in 4 to 6 weeks at $374.21/share. Here’s why I like ISRG:
This chart has awesome price momentum fueled by relentless earnings growth. It’s a rock star story that has defined all of the boo hoo hoo affiliated with the recession and Obama’s health care theatrics.
Intuitive Surgical, Inc., together with its subsidiaries, engages in the design, manufacture, and marketing of da Vinci surgical systems for use in urologic, gynecologic, cardiothoracic, general, and head and neck surgeries.
Intuitive Surgicals da Vinci Surgical System enables minimally invasive surgery that overcomes the trauma faced by patients in open surgery. Minimally Invasive Surgery is becoming increasingly popular in helping patients reduce recovery time, thereby saving hospitalization costs.
Intuitive Surgical generates recurring revenue through its razor/razor blade business model. The model ensures that the company keeps on generating revenues following the initial sale of the da Vinci Surgical System. Just like when you buy a printer for your computer. You think you get a good deal on the printer, then you have to pay out the wazoo for ink the rest of your life and you have to keep changing the ink every 5 seconds. I always run out of Magenta, you? Anyway, this enables the company to have a regular stream of income even in these testing times. Furthermore, Intuitive Surgical operates in a niche market with no direct competition. In June 2003, Intuitive acquired its only direct competitor, Computer Motion. The company uses a unique technology that reinforces its competitive advantage.
Increased adoption of the da Vinci Surgical System resulted in consistent top-line growth. In the most recently reported quarter, a greater number of surgical procedures were performed using the da Vinci Surgical System. This had resulted in higher Instruments & Accessories revenues. ISRG will continue growing revenues in this segment in future. Intuitive Surgical keeps on innovating new technologies for its Surgical Systems. The company introduced a new da Vinci Si Surgical System with additional features that improves the efficiency of surgeons in operating rooms. The new features include: higher visual performance that enhances surgeons efficiency and shortens procedure time; a simplified and user-friendly interface that reduces surgeon workload during surgery; a dual surgeon console that allows a second surgeon to view the same surgery as the primary surgeon, thereby enabling collaborative surgery.
Hey surgery is no fun. I had unbilical hernia surgery and I couldn’t lift weights for 6 months. I turned into an endomorph. Fortunately I am back at it and am benching 315 lbs for reps like it is paper. The da Vinci system delivers better outcomes with less blood loss and pain, resulting in quicker healing times. That in turn helps hospitals rein in rising medical costs, which are at the heart of the U.S. health care debate. Using the da Vinci, average hospital stay is reduced from 5.2 days for open to 1.7 days with da Vinci.
ISRG enjoys a much greater advantage over its customers. Once a hospital has bought and installed its machines, its doctors and staff must continue to buy and use the associated surgical supplies. Switching to a rival's systems would be expensive and time-consuming for a hospital currently using Intuitive's devices. That advantage may help explain Intuitive's amazing performance -- it's averaged more than 50% annual returns over the past five years.
Like I said, ISRG has been able to beat expectations quarter-over-quarter in a difficult soft demand market which is exacerbated by restricted credit. Still the hospitals are out there buying up the da Vincis. Do you take your car to a car wash that has brushes that scratch your vehicle? Why would you take your body to a hospital run by Fred Flinstone and Barney Rubble? New technology sells and this is a way for the premier hospitals to differentiate themselves.
All of this good news comes with a grain of salt. ISRG is expensive. Not just its stock price, but its PE (around 54). Well the stock is up 289% over the last 52 weeks. Of course it’s expensive, but its not overpriced. You want to eat steakey wakey at Peter Lugers, you pay.
Brilliant minds like mine don't worry too much about the PE ratio. This company has fertile fields to grow as they transform very difficult complex medical procedures into procedures that are much less traumatic than before. Not only do patients get the benefit of accuracy, efficacy, and smaller incisions, they also recuperate faster. If you wish to be a surgeon in the future begin studying it on one of these systems.
Seldom is there an emerging technology with such strong market dominance (monopoly), profitability, acceptance, and growth with such a high barrier to entry (medical approvals and robotics thresholds) and such a clear benefit to humanity. What could be better than being able to write your name in the snow when you are 60 yrs old after a prostate operation?
The company is looking to build on the 205,000 procedures that were performed on its machines last year with a 35% growth in procedures this year. That pays for a lot of “House” episodes and the resale revenue from instruments is growing like crazy. They are also selling a lot of equipment to hospitals that already have da Vinci systems….which means the stuff works great and you have satisfied customers.
It’s all about the mayonnaise though. How does all this good news translate to earnings?
Last month they reported fourth quarter of 2009 revenue of $323.0 million, up 40% compared with $231.5 million for the fourth quarter of 2008. Fourth quarter of 2009 revenue growth was driven by continued robotic procedure adoption and higher da Vinci Surgical System sales.
Fourth quarter of 2009 net income was $77.6 million, or $1.95 per diluted share, compared with $50.8 million, or $1.27 per diluted share for the fourth quarter of 2008. Earnings gained 54% to $1.95 a share, beating Wall Street ANAL-yst views by 24 cents.
Revenue for the year ended December 31, 2009 totaled $1,052.2 million, increasing 20% from $874.9 million for the year ended December 31, 2008. Net income for the year ended December 31, 2009 was $232.6 million, or $5.93 per diluted share, compared to net income of $204.3 million, or $5.12 per diluted share for the year ended December 31, 2008.
We all know what it did, so what will it do? ANAL-ysts say that ISRG will earn $7.69/share on $1.33 Billion in revenue in 2010. That’s actually not a bad prediction. $$$MR. MARKET$$$ sees revenues at $1.35 billion and associated earnings of $7.86/share. If you take my earnings projection of $7.86/share and multiply it by today’s PE ratio of 54, you get a share price of $424.44/share which is well past my sell price. So…there you go.
What does the head surgeon say?
Gary Guthart, President and CEO of Intuitive Surgical, said, “We are pleased with the performance of our team in the fourth quarter, our procedure growth, and as a consequence, our financial results. Led by outstanding patient outcomes, robotic surgery adoption with patients and the medical community at large continues to grow.”
And from the CFO:
“Let me summarize our results for 2009. Total procedures grew by 51% compared to 2008 to approximately 205,000 procedures. Total 2009 revenue was $1.052 billion, up 20% compared with $875 million last year. Recurring revenues, driven by procedure growth, an increase of 34% compared to 2008."
And here is a quote from a satisfied customer:
“Our first patient is Mr. Dale Gayan, a patient of Dr. Brian Golden at – of Summerlin Hospital Medical Center in Nevada. Quote, "This is my note to – my thanks to Dr. Golden for saving most of my left kidney. My story is a little unusual, since I had already lost my right kidney to cancer in 2002. That whole kidney was removed in a traditional operation through a long "shark bite" that was awfully painful and took several months to recover from. Recently my doctor found the new tumor in my left kidney, the only one I have left. I was scared I would need this kidney removed, then be hooked up to dialysis for the rest of my life.
The urologist who took out my right kidney years ago recommended Dr. Brian Golden. My primary doctor rated Dr. Golden as "excellent" which, of course, influenced my decision, but the deciding moments were when I actually met and discussed my case with Dr. G. He showed me my CAT scan and the tumor. He described the operation using the da Vinci robot, robotic-assisted partial nephrectomy, and showed me how much of my kidney could be saved. He had a very reassuring bedside manner, was confident but not arrogant, and answered all of my questions. He made me feel comfortable that I had found the right surgeon for my terrifying situation.
The surgery went great. My kidney was working just as well after surgery as beforehand. The few little incisions weren't very painful and I was out of the hospital in just a day and a half. When I saw Dr. Golden after surgery, he said the pathology report said all the cancer was removed. My primary care doctor was absolutely amazed at my speedy recovery and the difference in my incisions for the right and left kidney operations,"
That says it all. If you like this stock, and end up making some money on it, please remember Dereks Dreams: www.dereksdreams.com
I am HUGE!! Bring me your finest meats and cheeses.
$$$MR. MARKET$$$
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