BloggingStocks

Barron's covers Intuitive Surgical with wet blanket

Sheldon Liber — 2008-07-28T14:53:00+00:00

Filed under: Chasing Value, 25 Stocks for Next 25 Years, Stocks to Buy, Intuitive Surgical Inc (ISRG), Technology, Best Stocks for 2008

This week's Barron's (subscription required) finally had Intuitive Surgical (NASDAQ: ISRG) on its cover, and cover it it did, but with a wet blanket.

The stock is down in early trading today, but that is probably warranted given the runup last week when it jumped $52 in one day after it reported one more mind boggling quarter. I only exaggerate slightly as the company beat estimates by 10 cents a share and increased margins in all areas, when I reported then, Chasing Value: Intuitive Surgical beat the street AGAIN!

The Barron's story, Surgical Robot Cuts Both Ways by Andrew Barry questions the stock's valuation and the company's projections of expanding sales and service figures.

Mr. Barry points out that the stock is trading at sky high valuations and that any disappointment could result in a 25% drop in the stock price. I would remind ISRG fans and stock watchers that this has happened on many occasions without any bad news. It had reached a high around $360 per share and then traded down until it took a dive into the $240s when Wall Street decided that the slowing economy and tighter fiscal restraint on the part of hospital administrators would dampen ISRG's prospects in the second half of 2008.

Last week's earnings report dispelled that sentiment quickly and the company gave encouraging projections for the rest of the year. After reading the article, I came away with many positives. There still remains no competition for this company that 'owns the space' of surgical wards, by owning the patents for the hardware, software and replacement parts, as well as providing training and follow-on service -- all at high profit margins.

Mr. Barry also has interviewed many practicing professionals and patients that were very favorable. So it comes down to valuation alone. I agree with Mr. Barry that the current price is very dear, but the issue is not as simple as that. Here the story falls short. It includes a detailed discussion of the size of the market and various perspectives on how much business there is in the next few years but it leaves out a discussion of the different perspectives investors should consider.

For example, if you own the stock now and do not expect to need the money you have invested in the next three years, then you can be long the stock without much to be worried about. If you do not own the stock, then perhaps you put it on your watch-list and buy it later after a dip. Remember you do not have to own anything, including ISRG. The price you pay is important.

If you own the stock and might need the money for something in the next year then it probably is advisable to take something off the table to cover your needs, don't be greedy and take some gains now. If you are considering selling in the next six months anyway it might also be advisable to speak with your tax advisers because of the capital gains consequences and the strong likelihood that they will be higher in 2009.

Before the earnings report ISRG closed at $280.23. The stock closed at $322.07 Friday. It opened today at $314.33 and is trading at about that now 1:14 PM EST. FINAL: $308.23, down -13.84 (-4.30%)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of ISRG.

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Chasing Value: Intuitive Surgical beat the street AGAIN!

Sheldon Liber — 2008-07-23T10:22:00+00:00

Filed under: Major movement, International markets, Earnings reports, Good news, Products and services, Top Picks 2007, Chasing Value, Stocks to Buy, Intuitive Surgical Inc (ISRG), Technology, Best Stocks for 2008

My favorite company, Intuitive Surgical Inc. (NASDAQ: ISRG), the maker of the da Vinci Surgical System reported earnings Tuesday afternoon that creamed Street guesstimates by 10 cents per share. Intuitive posted earnings per share of $1.28 versus analyst consensus of $1.18.

For the 23rd quarter in a row, just like clockwork and without missing a beat, Intuitive's top and bottom line growth simply ignored the global economy, blazing its own trail. I wonder how ISRG would have done if the economy was not in the dumps?

Overall, second quarter revenue shot up 56% from $142.2 million to $219.2 million. Instruments and accessories revenue increased 61% to $73.6 million from $45.8 million. Training revenue increased 44% to $29.4 million from $20.3 million during the second quarter of 2007.

Lonnie Smith, Chairman and CEO of Intuitive Surgical, said, "We are pleased with our second quarter revenue and earnings growth. These results reflect the continued adoption of the da Vinci Surgical System platform across a broadening group of surgical procedures."

He should be a lot more than pleased; I am. Besides top and bottom line growth along all revenue streams, the company also ended the second quarter of 2008 with cash, cash equivalents and investments of $740 million, up $104 million from December 31, 2007.

I have recommended ISRG many times, but looking back to last July for some of my rationale would be worth a gander if you missed it: Intuitive Surgical jumps over 32% - where's the ceiling? At the time, the stock was trading under $200 per share even after the big increase.

I still think this stock belongs on your watch list and that there is no reason why it will not double in size in the next few years. I have no timetable but I do not see anything getting in its way. Of course, that is possible, but it seems to hold all of the patents and have the scale, experience and partnerships to hold the court for a long time.

Before the earnings report ISRG closed at $280.23. Afterwards, in extended hours trading, it was changing hands at $332.77 a share. It opened today at $313.495 and traded 16% higher at around $325 by 9:52 am. After Market Update: Closing price $331.13, +$50.90 (+18.16%)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of ISRG.

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Serious Money: Five stable stocks for troubled times

Sheldon Liber — 2008-07-01T15:02:00+00:00

Filed under: Microsoft (MSFT), Yahoo! (YHOO), General Motors (GM), Berkshire Hathaway (BRK.A), Walt Disney (DIS), Citigroup Inc. (C), Johnson and Johnson (JNJ), Chubb Corp (CB), Merrill Lynch (MER), Goldman Sachs Group (GS), Morgan Stanley (MS), Huaneng Power Intl ADS (HNP), Teva Pharm Indus ADR (TEVA), Lehman Br Holdings (LEH), Bear Stearns Cos (BSC), Intuitive Surgical Inc (ISRG)

Six months of 2008 are now behind us and the stock market has not been a friendly place to most investors. Stability that was once found in household names that were industry giants is gone, and they have now been brought to their knees.

Many of them were the stocks we might have looked to in the past for stability, so you can be sure I put forward my five candidates with a little trepidation, but forward I go anyway. First a little review is in order.

Citigroup Inc. (NYSE: C) dropped from around $53 per share last year to around $30 in January and we can buy it today for around $17. Even at that price Goldman Sachs (NYSE: GS) has downgraded it to a sell and thinks there is more bad news to come. Citigroup was the largest bank in the world. Not any more.

General Motors (NYSE: GM) was the largest car maker in the world. That was before the stock tumbled from $43 to its current $11 range. A crushing blow to long time investors hoping that someone in the company could stop the ship from sinking.

Goldman Sachs (NYSE: GS) itself is down from $250 to a very soft $177 (it's traded as low as $161.21 today) and does not appear to be at risk as much as some of its competitors, companies that do not look as competitive any more. Bear Stearns is gone, Lehman Brothers Holdings (NYSE: LEH) is on the ropes and Merrill Lynch (NYSE: MER) and Morgan Stanley (NYSE: MS) are teetering.

Reliable software giant Microsoft Inc. (NASDAQ: MSFT) is down from $37.50 to $27 and is so desperate for some traction that it is wasting its time with something called the Zune and made an unsuccessful offer to acquire Yahoo! (NASDAQ: YHOO), which is also down on its luck; 50% down since it rejected the offer.

I do not own any of these stocks, and I could list a thousand stocks to keep them company. Some that I do own as "core holdings" that are down include Huaneng Power Intl ADS (NYSE: HNP) that was trading as high as $57 and is now a more affordable $27 per share. Another one of my favorites, Intuitive Surgical Inc (NASDAQ: ISRG), is down from $360 to $260 and may drop further as hospitals look to conserve capital the rest of the year and into the uncertainty of a new presidential administration and economy. Even that old standby for tough times Berkshire Hathaway (NYSE: BRK.B) has shown weakness dropping 20% from around $5,000 to $4,000 a share.

I could point to some energy and food stocks that have done well this year but those could lose their footing as well if oil prices do not hold up. There are those that think we are in a short term speculative bubble and they could give back some of the this year's gains.

So where to hide? What if anything has been stable? The following five companies made the grade.

1) Johnson and Johnson (NYSE: JNJ): This one is probably not any surprise. There was no money to be made here but you would not have lost any either. Year to date it has traded between $68 and $64 and that is about where it has been for quite some time. It does pay almost a 3% dividend yield and that's mighty fine these days.

2) Teva Pharmaceuticals ADR (NASDAQ: TEVA): Pharmaceuticals have long been a safe haven in troubled times and the world's largest maker of generic drugs is sitting pretty these days with expanding markets everywhere it looks. This Israeli company has traded roughly between $43 and $47 for quite some time, pays a 1% yield and looks to have plenty of upside going forward.

3) Chubb Corp (NYSE: CB) the conservative insurance company has held up better than most of its peers. Over the past six months and going back two years it has hovered between $49 and $54, all the time paying about a 2.6% yield.

4) Xcel Energy (NYSE: XEL) is a holding company for numerous utilities. Over the course of the past twelve volatile months it has been trading in a 10% range between $20 and $22 while paying a huge yield, which today stands at 4.8%.

5) Walt Disney (NYSE: DIS) may be a great place to hide if you want to forget your troubles, whether you chose the new Pixar hit movie "WALL-E" or Disneyland, or a trip down memory lane renting or downloading any one of its countless hits from its film library. The stock is currently trading in the neighborhood of $30.62, mid-point in its 52 week range. Over the past six months it has spent most of the time drifting between $30 and $33 per share with a few drops and pops here and there. The 1.1% yield is not as generous as the others but it I would be happy to take it.

What do they have in common? They are diversified among their industries, have growth horizons, and of course they all pay dividends. But the standout at this juncture seems to be that they all have shrewd conservative management teams -- and they have been in the right place, at the right time, and prepared.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. DISCLOSURE: I currently own shares of BRK.B, HNP, ISRG, JNJ.

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Analyst initiations: LEH, NOK and ISRG

Eric Buscemi — 2008-07-01T11:24:00+00:00

Filed under: Analyst reports, Nokia Corp. (NOK), Adobe Systems (ADBE), Analyst initiations, Lehman Br Holdings (LEH), Intuitive Surgical Inc (ISRG)

MOST NOTEWORTHY: Lehman Brothers, Nokia and Intuitive Surgical were today's noteworthy initiations:

Morgan Stanley initiated Lehman Brothers (NYSE:LEH) with an Overweight rating and $31 target. The firm believes Lehman's discount to book value prices in significant write-downs.
Bernstein believes Nokia (NYSE:NOK) will see a slowdown in demand for devices and could loss market share. Shares were initiated with an Underperform rating.
Merriman assumed Intuitive Surgical (NASDAQ:ISRG) with a Neutral rating and believes the tightened credit markets could impact capital equipment spending for small and mid-sized hospitals. They find shares appropriately valued at current levels.

OTHER INITIATIONS:

Terre Kaufman initiated Terremark Worldwide (NASDAQ:TMRK) with a Buy rating and $8 target.
T-3 Energy (NASDAQ:TTES) was initiated at Jefferies with a Buy rating and $95 target.
Adobe (NASDAQ:ADBE) was assumed with an Outperform rating and $48 target at Friedman Billings.

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Earnings highlights: Ford, Hormel, Limited Brands, Intuitive Surgical, PetSmart and others

Trey Thoelcke — 2008-05-25T09:10:00+00:00

Filed under: Earnings reports, Ford Motor (F), Hormel Foods (HRL), Limited Brands (LTD), salesforce.com inc (CRM), Intuitive Surgical Inc (ISRG)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Aeropostale Inc. (NYSE: ARO) posted strong Q1 results on increased same-store sales.
Analog Devices Inc. (NYSE: ADI) reported solid Q2 results and raised its Q3 guidance.
BMC Software Inc. (NYSE: BMC) Q4 results beat estimates and it raised its full-year guidance.
Charming Shoppes Inc. (NASDAQ: CHRS) posted a Q1 loss its worst sales decline in years.
Ford Motor Co. (NYSE: F) warned that it doesn't expect 2009 profit despite some strength overseas.
Gymboree Corp. (NASDAQ: GYMB) reported strong Q1 results due to higher retail sales.
Hormel Foods Corp. (NYSE: HRL) posted solid Q2 results that beat Wall Street estimates by a penny.
Intuitive Surgical Inc. (NASDAQ: ISRG) warned that it might not meet expectations for 2008.
Limited Brands Inc. (NYSE: LTD) disappointing Q1 results were offset by a one-time sale of an asset.
PetSmart Inc. (NASDAQ: PETM) posted weak Q1 results that beat estimates, and offered weak guidance.
Salesforce.com Inc. (NYSE: CRM) reported strong Q1 results that led to analyst upgrades.
Talbots Inc. (NYSE: TLB) restructuring costs and soft same-store sales dragged down Q1 earnings.
Toro Co. (NYSE: TTC) Q2 profits and revenues declined but beat low expectations of analysts.

Additional earnings highlights:
Home Depot, Gap, Lenovo, Air France, Activision, Suntech and others
Hewlett-Packard, Target, Barnes & Noble, Campbell, Staples and others

Upcoming results to watch for include Borders (NYSE: BGP), Polo Ralph Lauren (NYSE: RL), TiVo (NASDAQ: TIVO), Big Lots (NYSE: BIG), Costco (NASDAQ: COST), Dell (NASDAQ: DELL), HJ Heinz (NYSE: HNZ), Sears (NASDAQ: SHLD), Lions Gate (NYSE: LGF), and Tiffany (NYSE: TIF).

Visit AOL Money & Finance for more earnings coverage.

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Chasing Value: S&P 500 adds Intuitive Surgical

Sheldon Liber — 2008-05-23T15:02:00+00:00

Filed under: Chasing Value, S and P 500, Bear Stearns Cos (BSC), Stocks to Buy, Intuitive Surgical Inc (ISRG), Best Stocks for 2008

Last night Intuitive Surgical (NASDAQ: ISRG )reached a historic milestone in its meteoric company life when Standard & Poors decided to add it to the S&P 500 index. It will be replacing Bear Stearns (NYSE: BSC) after J.P. Morgan Chase (NYSE: JPM) completes it's acquisition in the next couple of months.

After a tough day yesterday Chasing Value: Intuitive Surgical confounds Wall Street and closed down to a recent low of $274.75. It opened up today on the news and is currently trading up about 4% to $285 per share, in a market that is trading down across the board.

The following five-year chart illustrates the rapid rise of this highly specialized company that produces a robotic surgical device called the "da Vinci System". They own all the patents for the hardware, software, replacement parts, and service contracts too. That is one big moat around this company.

If you were following my post last year you might have read Serious Money: You asked about Intuitive Surgical? when ISRG was trading in the low $120's. Since that time it has reached $359.59 -- not a bad return. I have been following ISRG since the beginning and own shares at $7.70 the lowest entry point possible post IPO.

The irony of this story is that I also recommended Bear Stearns last year so my best stock pick ever is replacing one of my worst. Intuitive Surgical belongs on your watch list, and if it dips again during the sumer doldrums perhaps there might be another buying opportunity.

UPDATE: ISRG finished the day at $284.77 up $10.02 (+3.65%)

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I own shares of ISRG.

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Option Update: Intuitive Surgical volatility low into addition to S&P 500

Paul Foster — 2008-05-23T09:04:00+00:00

Filed under: Options, Bear Stearns Cos (BSC), Intuitive Surgical Inc (ISRG)

Intuitive Surgical (NASDAQ: ISRG) is recently up $11.30 to $286.05 in pre-open trading.

ISRG will be added to the S&P 500 Index on May 30, replacing Bear Stearns (NYSE: BSC).

ISRG uses advanced robotics and computerized visualization technology for invasive surgeries. Cowen has an Outperform rating on ISRG.

ISRG overall option implied volatility of 48 is below its 26-week average of 53 according to Track Data, suggesting decreasing price movement.

Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com

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Chasing Value: Intuitive Surgical confounds Wall Street

Sheldon Liber — 2008-05-22T15:44:00+00:00

Filed under: Earnings reports, Analyst reports, Other issues, Market matters, Chasing Value, Stocks to Buy, Intuitive Surgical Inc (ISRG), Technology

It was reported today that robotic surgery company Intuitive Surgical, Inc. (NASDAQ: ISRG) may not meet analysts average revenue expectations for 2008 and this is driving shares down $7.00 hovering around $281 per share.

Although the company guidance discussed figures around $850 million while the analysts were GUESSING $873 million temporary disappointment is affecting trading. Despite this, Eli Kammerman of Cowen & Co is maintaining his "Outperform" rating saying that he expects Intuitive to beat Wall Street expectations, and that the shares will outpace the market by 15 percent to 20 percent over the next 12 months.

So earnings might be in question, the stock is bouncing, the outperform rating is intact, and everybody still loves Intuitive -- but the stock is down so far on what is an up day. It was only a month ago I posted something similar Chasing Value: Intuitive Surgical drops on analyst disappointment after ISRG report actual earnings. If not for the analysts where would we find opportunity?

Is this a buying opportunity or signs of a week market? That answer involves more guessing, but if the stock trends down more, than it is more of an opportunity, which means you should have this world class medical device company on your watch list.

UPDATE: closing price $274.75 ,-$13.90 (-4.82%)

EXTENDED HOURS: $289.00, +14.25 (5.18%) on news that ISRG will replace Bear Stearns in the S&P 500.

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Earnings highlights: Google, Intel, Coca-Cola, Pfizer, eBay, AMD and others

Trey Thoelcke — 2008-04-20T10:10:00+00:00

Filed under: Earnings reports, Google (GOOG), eBay (EBAY), Pfizer (PFE), Coca-Cola (KO), Intel (INTC), Nokia Corp. (NOK), Advanced Micro Dev (AMD), Abbott Laboratories (ABT), Xerox Corp (XRX), Reliance Steel and Aluminum (RS), Hunt(J.B.) Transport (JBHT), Intuitive Surgical Inc (ISRG)

Here are some highlights from this past week's earnings coverage from BloggingStocks:

Abbott Laboratories Inc. (NYSE: ABT) first-quarter profit soared on overseas demand for Humira.
Advanced Micro Devices Inc. (NYSE: AMD) posted a bigger-than-expected loss, its sixth straight.
Coca-Cola Co. (NYSE: KO) posted better-than-expected first-quarter results on strength overseas.
CSX Corp. (NYSE: CSX) first-quarter profit soared on strong demand for grain, ethanol, and coal.
eBay Inc. (NASDAQ: EBAY) beat first-quarter expectations but the outlook was uninspiring.
Google Inc. (NASDAQ: GOOG) first-quarter profit soared 42%, beating Wall Street estimates.
Intel Corp. (NASDAQ: INTC) first-quarter earnings slipped but exceeded expectations.
Intuitive Surgical Inc. (NASDAQ: ISRG) beat first-quarter estimates and offered a disappointing outlook.
J.B. Hunt Transport Services Inc. (NASDAQ: JBHT) missed first-quarter estimates on rising fuel prices.
Nokia Corp. (NYSE: NOK) first-quarter profit missed expectations and it warned of a coming decline.
Pfizer Inc. (NYSE: PFE) first-quarter profits fell and missed analysts' expectations.
Reliance Steel & Aluminum Co. (NYSE: RS) lowered its second-quarter outlook.
Royal Philips Electronics posted a bigger-than-expected fall in profit on weak North America TV sales.
Wolverine World Wide Inc. (NYSE: WWW) beat earnings estimates but shareholders were not impressed.
Xerox Corp. (NYSE: XRX) posted a first-quarter loss that matched analysts' estimates.

Also, Jim Cramer doesn't think General Electric (NYSE: GE) is the bellwhether some take it for. Goldman Sachs (NYSE: GS) is pessimistic about this earnings season. And here's a look at some companies that reported this week that could bounce back after the recession, as well as earnings expectations for "barometer" companies reporting next week.

Upcoming results to watch for include Bank of America (NYSE: BAC), Halliburton (NYSE: HAL), Merck (NYSE: MRK) Texas Instruments (NYSE: TXN), AT&T (NYSE: T), DuPont (NYSE: DD), Yahoo! (NASDAQ: YHOO), Amazon.com (NASDAQ: AMZN), Apple Inc. (NASDAQ: AAPL), Qualcomm (NASDAQ: QCOM), Boeing (NYSE: BA), UPS (NYSE: UPS), 3M (NYSE: MMM), PepsiCo (NYSE: PEP), Microsoft (NASDAQ: MSFT), Motorola (NYSE: MOT), and McDonald's (NYSE: MCD).

Visit AOL Money & Finance for more earnings coverage.

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Chasing Value: Intuitive Surgical drops on analyst disappointment

Sheldon Liber — 2008-04-18T11:52:00+00:00

Filed under: Earnings reports, Analyst reports, Forecasts, Chasing Value, Intuitive Surgical Inc (ISRG), Best Stocks for 2008

While analysts have proven over and over again that they are human (can't be more polite than that) the impact that they have on short-term stock values is clear. Intuitive Surgical Inc. (NASDAQ: ISRG), which closed yesterday at $348.50, dropped to $310.54 at the opening bell and is now trading at $292.00 as I type away. I will report the closing price in an update, but for now the stock has been hit hard -- down over 16%.

ISRG the maker of the da Vinci system, which uses robotic equipment and computers to do minimally invasive surgical procedures disappointed analysts and the stock was punished. Interestingly ISRG reported strong growth and even a positive outlook, however, that outlook was not as glowing as analysts expected and the result is not pretty. Does this mean that the company is not doing very well -- no. Does this mean that the stock price will not be higher next year than it is today -- the answer is no again.

What it does mean is that like other stocks with nosebleed valuations, such as Intuitive's with a trailing P/E of 80, they remain hypersensitive to the slightest deviation from expectations, reasonable or not. This happens even when Intuitive Surgical Q1 profit almost doubled.

Intuitive Surgical reported Q1 EPS of $1.12, compared with analysts' consensus estimate of 98 cents. The company's Q1 revenue was $188.2M, versus the consensus of $178.21M. The company predicted that its revenue would grow 42% in 2008, implying revenue guidance of $853.2M, versus the consensus of $857.3M. Two research firms had different outlooks on Intuitive Surgery's shares after the company announced its results. Deutsche Bank believes the results should reduce worries about the credit crunch negatively affecting the company. The firm thinks the underlying demand for robotic surgery is favorable, while the company's business is still strong, and they maintained their Buy rating. ThinkPanure downgraded the stock to Accumulate from Buy. While the firm believes that Intuitive had a strong Q1 and they forecast that the results will help the company grow into its multiple, they do not anticipate that the shares will appreciate this year.

UPDATE: Closing price $288.50 down $60.00 (17.22%)

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Closing Bell: Despite a losing day, it's a win

Jon Ogg — 2008-04-14T16:29:00+00:00

Filed under: General Electric (GE), Blockbuster Inc 'A' (BBI), Circuit City Stores (CC), Wachovia Corp (WB), Intuitive Surgical Inc (ISRG)

Today's markets could have actually been a lot worse. Oil rose $1.63 to $111.77 per barrel, making $100 ancient history. The March retail sales numbers would have been great at the +0.2% reading except for the fact that it was due to higher gas prices paid at the pump; otherwise sales would have been flat. In the environment of weak spending, that might still be a win. After everyone's favorite conglomerate killed the markets Friday, these small losses are a win. Below are the unofficial closing levels:

DJIA 12,302.06 (-23.36; -0.19%)
S&P500 1,328.27 (-4.56; -0.34%)
NASDAQ 2,275.82 (-14.42; -0.63%)
10YR-TBond 3.5030% (+0.032%)
52 WEEK LOWS

AirTran Holdings Inc. (NYSE: AAI) was upgraded by Raymond James today after a huge airline sell-off last week. Shares closed up 20% at $4.97.

Circuit City Stores, Inc. (NYSE: CC) rose after Blockbuster Inc. (NYSE: BBI) offered to pay at least $6.00 per share for the company, a premium of over 54% at the time of the offer, valuing the company at over $1.00 billion. Blockbuster stated that it can fall on Board member Carl Ichan for funding any additional funding, if necessary. Following the announcement, Blockbuster was downgraded by BMO Capital Markets. Shares for Circuit City closed up 27% at $4.97 and Blockbuster closed down 10% at $2.81.

Carpenter Technology Corporation (NYSE: CRS) traded at 52-week lows after the company released guidance that forecasts a decline in third quarter profit and earnings. Shares closed down 16% at $48.86 on the day.

Agria Corporation (ADR) (NYSE: GRO) dipped on class action allegations filed today, citing a failure of the company to disclose pertinent information regarding COO compensation in the IPO prospectus. Agria set to strongly contest and defend itself on any and all allegations. Shares closed down 8% at $4.19.

General Electric Company (NYSE: GE) saw several downgrades today after a shocking quarter report last Friday. Its shares actually regained some of the losses with a +0.3% rise to $32.14.

Intuitive Surgical, Inc. (NASDAQ: ISRG) dropped slightly after a Cowen and Co. analyst report predicted lower first-quarter earnings due to high R&D expenditures. A Wachovia analyst projected that the earnings will beat street projections. Shares closed down almost 3% at $324.84.

Wachovia Corporation (NYSE: WB) was down after a reported $393 million in first-quarter losses and -$0.20 EPS, cutting dividends. The company is planning to raise $7 billion in a common stock and convertible preferred stock offering. Shares closed almost 9% at $25.31.

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Analyst initiations: Mortgage insurers, THOR and ELY

Eric Buscemi — 2008-04-10T11:25:00+00:00

Filed under: Analyst reports, Analyst initiations, Intuitive Surgical Inc (ISRG)

MOST NOTEWORTHY: Mortgage Insurers, Thoratec Laboratories and Callaway Golf were today's noteworthy initiations:

Keefe Bruyette resumed coverage of Old Republic (NYSE:ORI), MGIC Investment (NYSE:MTG), PMI Group (NYSE:PMI) and Radian (NYSE:RDN) with Market Perform ratings and a $16 target, $13 target, $7 target and $6.50 target, respectively, as they expect increased capital needs to generate operational headwinds in the near-term.
JMP Securities expects FDA approval of Thoratec's (NASDAQ:THOR) next generation HeartMate II VAD any day now and for the company to meet/beat 2008 sales guidance. Shares were started with an Outperform rating and $20 target.
Callaway Golf (NYSE:ELY) was assumed at Stephens with an Overweight rating and $19 target. The firm is positive on Callaway's leadership position, strong balance sheet, new products and international opportunity.

OTHER INITIATIONS:

Kaufman Bros. initiated Bancscares of Florida (NASDAQ:BOFL) with a Buy rating and $15.50 target.
Raymond James started Dialysis Corp of America (NASDAQ:DCAI) with a Strong Buy rating and $9 target.
Intuitive Surgical (NASDAQ:ISRG) was initiated at Lazard with a Buy rating and $420 target.

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Analyst initiations: DRRX, RRGB and VPHM

Eric Buscemi — 2008-03-14T11:55:00+00:00

Filed under: Analyst reports, Analyst initiations, salesforce.com inc (CRM), Intuitive Surgical Inc (ISRG)

MOST NOTEWORTHY: Durect, Red Robin Gourmet and ViroPharma were today's noteworthy initiations:

RBC Capital thinks Durect's (NASDAQ: DRRX) overall portfolio is very attractive and started shares with an Outperform rating and $7 target.
Red Robin Gourmet (NASDAQ: RRGB) was initiated at Jefferies with a Buy rating and $40 target. The firm believes the company has one of the few stable earnings stories in the sector, which should warrant a valuation premium in the current environment.
JMP Securities believes ViroPharma's (NASDAQ: VPHM) valuation reflects several negative scenarios and notes that earnings will likely remain positive and that the company has a strong balance sheet; shares were initiated with an Outperform rating and $12 target.

OTHER INITIATIONS:

Harmonic (NASDAQ: HLIT) was assumed with an Overweight rating and $14 target at Stephens.
ThinkEquity initiated Intuitive Surgical (NASDAQ: ISRG) with a Buy rating and $360 target.
Broadpoint started Salesforce.com (NYSE: CRM) with a Buy rating.

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Kiss of death: GOOG $2,000 & AAPL $300

Sheldon Liber — 2008-03-10T15:32:00+00:00

Filed under: Major movement, Rants and raves, Google (GOOG), Apple Inc (AAPL), Berkshire Hathaway (BRK.A), Market matters, Intuitive Surgical Inc (ISRG)

Towards the end of 2007 when the overall stock market was softening, Google Inc. (NASDAQ: GOOG) and Apple Inc. (NASDAQ: AAPL) were still soaring to new highs, and the optimism most assuredly reached euphoria and beyond. What is the next level beyond euphoria -- madness -- and that's the kiss of death!

When the notorious Henry Bloggett proclaimed that GOOG was destined to reach $2,000 I do not think there was a dry eye in the house, either laughing at this ridiculous comment, which by the way offered no time frame or reference point, or crying for the shame of it all -- that was the kiss of death.

When I read about this I could not resist tempering the madness and posted Serious Money: Google (GOOG) $2,000? No way, it's too high now! The madness produced many interesting metrics to prove a point, including that you could have traded Google for both Berkshire Hathaway (NYSE: BRK.A) and Intuitive Surgical (NASDAQ: ISRG), two of my favorites, as an even swap (in capitalization only). That would be a heck of deal don't you think?!

My colleague Georges Yared was overly optimistic about Apple's growth potential, but I give more credence to his commentary because he had called it right for several years. However, I did part ways on his call for Apple to reach $300 (another kiss of death) and stand by my own comments (back of the napkin again) that Apple might reach the $150 to $160 range this summer. It just seemed to me that piling on another 50% growth on top of the already high metrics was not attainable. This did not stop some folks from frothing at the mouth and ranting about Apple reaching even higher to as much as $400 -- the madness was palpable.

Most of the time I try to temper what I see as over zealous commentary as I did last Friday posting Dow below 12,000 -- do I hear 11,000? Yes I do! This may not seem so moderate to those suffering 40% drops from AAPL and GOOG highs but it is within a tighter range than many are discussing. Still, some readers I received comments from grabbed the baton from me and proclaimed that the DJIA could sink to 10,000 or even as low as 8,000. I think not.

There are entire industries that are so essential and so active that there is a limit to their theoretical demise. These include healthcare, agriculture, energy, defense, transportation, education, utilities, and, largest of all, government.

When the market was raging on it was difficult for many to imagine that things could fall so fast. Now when things look rather pessimistic it is hard to imagine that things will improve any time soon. I am here to say they can get better. They will stabilize. All the ranting and raving creating euphoria and gloom, is just that, ranting and raving. I have shared the back of the napkin approach as a metaphor for basic investing principals.

When Apple and Google were flying high most stories were biased toward the upside. James Cramer is a leading example of that. Now that both companies have been cut down to size, writers are piling on biased toward the downside. I would advise my readers to ignore the noise in both cases. From my perspective both companies have more long term upside than down, although I personally am a much bigger fan of the diversified Apple Inc. and would not venture very deep into the Google Inc. one trick pony.

I doubt whether 'my pal Warren' used much more in any of his analysis as he leaped to the top of the investment world and would be shocked to find any of my long distance mentors using super computers to support their decisions. When you hear things like GOOG will be $2,000 or Apple will be $300 you should interpret these comments the same way you would any get rich quick scheme, and back away from the madness.

One more thing, if you do not have a napkin handy, the back of an envelope or business card is a suitable alternative.

Sheldon Liber is the CEO of a small private investment company and the principal for design and research at an architecture & planning firm. He writes the columns Chasing Value and Serious Money. Disclosure: I currently own shares in BRK.B and ISRG.

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Dow below 12,000 -- do I hear 11,000? Yes I do!

Sheldon Liber — 2008-03-07T15:02:00+00:00

Filed under: Rants and raves, General Electric (GE), Diageo plc (DEO), Tiffany and Co (TIF), Reliance Steel and Aluminum (RS), Under Armour'A' (UA), Valero Energy (VLO), Anadarko Petroleum (APC), Wells Fargo (WFC), Anglo Amer ADR (AAUK), USG Corp (USG), Stocks to Buy, Intuitive Surgical Inc (ISRG), Raytheon Company (RTN), Bunge Ltd. (BG), Recession

Earlier in the week I posted about finding the market bottom using that age-old handheld calculator, a white paper napkin. So, unfortunately it looks like I may be right again. Not exactly something I was hoping for, but if it has to be, it has to be. I wonder if my old napkin can outperform Wall Street super computers?

Is this an auction to the bottom? Are investors bidding things down instead of up? Looks like it from all the negative sentiment. Consumer sentiment is down, and short sellers are all excited, increasing their negative positions to new highs every day.

And here is the all-telling sign of capitulation: the ever-lying overly optimistic government is starting to admit how bad things are and throwing hundreds of billions of dollars at the problem. When does the turnaround come?

That's easy: when President Bush reverses his position from last week and states that yes, we may be in recession; followed by the least experienced investors stomachs churning while they bail out totally.

So let's look on the good side. This means all you true value investors should have your watch lists in hand as "my pal Warren" and I do (and Dan and Greg and Mr. Noital) because the bargains are going to come fast and furious as we approach the Dow at 11,000. Let's also not forget about stimulating production, as I've already written about in Serious Money.

Oh, by the way, this morning's short-lived uptick was just a few bottom fishers getting excited...but there is more to come.

A few things from my watch list:

Many of these are already bargains, but they will go lower. There are many more quality companies out there, and the lower the market drops, the easier it is to find them. Surprising as it may seem, when the market gets oversold, almost everything is a bargain. That being the case, load up on companies that pay dividends with quality products, good cash flow, low debt and of course...quality management.

Final Update: the DJIA closed at 11,893.69 -146.70 (-1.22%)

...and for a special treat: Ode to TECH-bubbles: YouTube at its best!

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Top 10 stocks since last recession, tax audit red flags to avoid & bankruptcies make gift cards worthless - Today in Money 3/4

Allan Halprin — 2008-03-04T08:38:00+00:00

Filed under: Apple Inc (AAPL), Starbucks (SBUX), Intel (INTC), Ford Motor (F), General Motors (GM), Toyota Motor Corp. (TM), Money and Finance Today, Research in Motion (RIMM), Staples Inc (SPLS), Reliance Steel and Aluminum (RS), Intuitive Surgical Inc (ISRG)

In the News:

· Intel Stock Drops on Lower Profit Outlook

· AOL Plans a Dozen New Web Sites in Next 6 Months

· Staples 4Q Profit Slips 1%

· GM, Ford, Toyota All report Sales Drops

· Starbucks Shakes Up Management of U.S. Operations

· Boom Time for 'Gently Used' Clothes

· Movie Studios Sic Dogs on DVD Pirates

· IHOP to Serve Green Eggs and Ham

· Oregon Conducts One-of-Kind Health Insurance Lottery

Top 10 Stocks Since Last Recession
Now that it looks like we're headed into an economic downturn, we asked ourselves, "What types of companies do we want to own?" To help you answer that see what stocks have excelled since our last recession in 2001. They include Apple, Research in Motion, Ultra Petroleum, Guess? and Intutitive Surgical to name a few.
The Top 10 Stocks Since the Last Recession - Fool.com

More People File Tax Returns Early, More E-File
More than 38 million Americans filed electronic federal tax returns in the first two months of the year, a 5% increase from 2007, the IRS said Monday in the first statistics of this tax season. Filers who prepared their own taxes and transmitted them from home computers accounted for more than 12.3 million of the electronic returns, up nearly 14% from last year.
More people file tax returns early, more e-file - USATODAY.com

Bankruptcies Make Gift Cards Worthless
You know that Sharper Image gift card you got for Christmas? Right now, it's worthless. And other gift cards in your wallet could lose their value, too.
Bankruptcy makes gift cards worthless - Marketwatch

Tax Audit Red Flags to Avoid
It is the most dreaded letter a taxpayer can receive. Dear Taxpayer,
Some of the information that you provided to us does not agree with the information we received from other sources. -- The Internal Revenue Service.
See what triggers an IRS audit and tips for you to avoid getting this letter.
Tempting the tax auditor -Bankrate.com

Buying a Home in A Rocky Housing Market Can Be Tricky
Plunging home prices may be tempting for buyers, but landing that great deal is tricky. Here are three things you should know before you start house hunting.
Buying in a Rocky Housing Market (Consumer Action: Personal Finance) | SmartMoney.com

Are You Overpaying for Where You Live?
As the economy stumbles, even residents of affluent suburbs are feeling pinched by basic costs that never bothered them before.
Are You Overpaying for Where You Live?

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Intuitive Surgical's technology is minimally invasive, maximally lucrative

Joseph Lazzaro — 2008-02-13T10:36:00+00:00

Filed under: Stocks to Buy, Intuitive Surgical Inc (ISRG), Technology

The choppy/consolidating (or perhaps worse) market conditions sometimes give the impression that growth plays do not exist, but that is not the case, and one growth company worth reviewing is Intuitive Surgical. (Note: Intuitive Surgical is only for investors who can tolerate high risk.)

Intuitive Surgical (NASDAQ: ISRG) has developed the da Vinci Surgical System of software, hardware and optics that allows doctors to perform robotically-aided surgery from a remote console.

Analysts believe 2008 revenue will move substantially higher on instrument and accessories sales, pricing power and high-definition system upgrades. Yes, high definition is coming to surgery, too.

Longer term, analysts see Intuitive's technology broadening to new surgical procedures. Margins remain massive and are likely to approach 75% in 2008. The Reuters F2008/F2009 EPS consensus estimates for ISRG are $5.05/$6.81.

The risks? Analysts are keeping an eye on ISRG's core component costs, as well on surgical equipment spending trends.

The First Call mean rating for ISRG is: Buy [9 firms]. Mean 2008 target: $330 [high: $360, low: $294].

Stock Analysis: Intuitive Surgical is a high-risk stock not suitable for moderate-risk or low-risk investors. Investors with an investment horizon longer than two years should be rewarded from ISRG's shares. Sell / Stop Loss in this company: $170.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.

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Bloggingstockcast: Intuitive Surgical bucking the down market

Tobias Buckell — 2008-02-12T23:28:00+00:00

Filed under: Intuitive Surgical Inc (ISRG)

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