This post was recently published on ZYX BuyChange Alert
Consider adding or initiating a 10% tranche on MAKO preferably around $15.80. The stock is very volatile and the price may be very different by the time you receive this signal.
We do not recommend adding or buying higher than $16.50. The stock is being hit hard.
MAKO Surgical said that based on the slower than expected start during the first six months of the year, it now anticipates selling 42 to 48 RIO systems in 2012, which compares to prior guidance of 52 to 58 RIO system sales. Additionally, as a result of adjusted guidance for 2012 RIO sales, MAKO is narrowing 2012 MAKOplasty annual procedure guidance to 11,000 to 12,000, which compares to prior guidance of 11,000 to 13,000 procedures. “With six months of 2012 behind us, we have experienced slower than expected growth,” said Maurice R. Ferré, M.D., CEO of MAKO. “While our core belief in the significant market opportunity and the transformational value of our technology remains intact, management’s near term focus will be to improve our execution for the remainder of 2012 and beyond.”
MAKO Surgical announced its selected operating results for the quarter ended June 30. Nine RIO systems were sold during Q2, of which eight were sold to domestic customers and one was sold to a distributor in China, which in turn was sold for commercial use to a prominent hospital in Hong Kong. The average selling price for RIO systems was in line with the prior quarter. During the second quarter, 2,590 MAKOplasty procedures were performed, of which 2,494 were performed at domestic sites. In Q2, nine MAKOplasty THA applications were sold, seven of which were sold with the domestic RIO systems sales during the quarter and two of which were sold as upgrades to existing commercial systems.
It is a speculative stock in the business of robotics surgery. This big spike down is a buying opportunity, however be aware that the stock can go much lower in the short term. This is why we are not recommending adding or initiating more than a 10% tranche here.
The plan is to buy more if the stock goes lower.