Wednesday, January 26, 2011

Buy Intuitive Surgical (ISRG)

Recent Share Price Increase

ISRG shares rose over 15% last Friday because of better than expected earnings expectations.  Is the share price too high to buy?  Conventional wisdom would say yes, however, I believe that ISRG is still a great buy.


Intuitive Surgical's Business

As you might have guessed, ISRG is in the medical surgery business.  ISRG has patented a robot called the da Vinci Robot that performs different types of surgeries.  The da Vinci Robot enables surgeries to be performed with maximum efficiency.  You could imagine that people are willing to pay big money to get this machine to perform their surgeries.

Key Financial Data

Intuitive Surgical is a fast growing and very profitable business with year to year revenue growth of over 20%, a profit margin of over 27%, and Return on Equity of over 20%.

For more on ISRG and the da Vinci Robot, please view the video below (if you are receiving this via email you can click on this link)



 Michael R Caligiuri owns shares of Intuitive Surgical

 

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