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Intuitive Surgical, Inc. Message Board

  • eyesandears51 eyesandears51 Dec 20, 2012 3:47 PM Flag

    ISRG: The Citron Bomb, Is it a dud?

    Interesting perspective from a brokerage web site.....Now may me a good entry point for Intuitive Surgical, ISRG. The stock has precipitously declined on a report by short selling research site Citron Research. ISRG dropped from $ 546.52 to $ 498. Citron has indicated that it does seek to profit from taking short positions in stocks before publishing negative “ research “ and has listed a target of
    $ 250 for ISRG. Several months ago Citron posted a negative report on QCOR, with a large subsequent drop in the stock before recovering. The basic Citron thesis is that the ISRG daVinci robotic surgical assist device is a product that does not work, designed for a problem that does not exist. Citron cites as confirming evidence, several lawsuits filed, and sub-optimal surgical results associated with da Vinci. Put in perspective, consider that medical “ mistakes “ associated with all surgical procedures nationwide, represents one of the top 10 causes of death annually, and most medically invasive devices have some associated lawsuits. Citron’s lead researcher reaches his conclusions, without the contextual benefit of a medical education. By comparison several thousand medical and surgical centers worldwide have adopted ISRG’s da Vinci. ISRG has $2 billion in annual revenue, growing at .2 qoq, Gross margins of 72%, and Operating margins of 40%. Prior to the Citron Report, ISRG stock was up from $ 267 YE 2010 to $ 546. The stock is 88% held by institutions and professional investors, many with domain expertise in the medical equipment field. Wall Street analysts had 7 buys, 6 holds, and 1 sell when the stock was at $ 546, with a median target price of $ 620.

    As always, do your own research. I have not found credible, unbiased confirmation to support the Citron conclusions.

    Additional perspectives welcome.

 
ISRG
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