| |
Jim:
How do you know
when a
super-powered,
turbocharged,
rocket-fueled,
steroidal growth
stock has lost
its mojo?...
How can you tell
when the thrill
is gone?...
That's the
question we've
got to ask about
Intuitive Surgical Inc. (ISRG)...
the medical
technology
company that
makes the
brilliant
DaVinci Surgical
Robot, a piece
of equipment
loved by the
healthcare
establishment...
loved by
doctors...
because it gets
people out of
the hospital
after prostate
surgery and
hysterectomies,
and it allows
doctors to
perform more
procedures, and
make more money.
This company has
been a fabulous
outperformer.
Remember, ISRG
puts the "I" in
C.A.N.D.I.E.S...
Chipotle, Apple,
Netflix,
Deckers,
Intuitive
Surgical,
Express Scripts,
and
Salesforce.com...
my acronym for
the
ultrafast-growing
cohort of stocks
that have, or at
least have had,
incredible
snap-back
ability. When
the rest of the
market rallies,
these names
rally harder...
At least that
was the
theory...
Lately though,
Intuitive
Surgical has
been a real dog,
down 21% since I
grouped it with
the other
sweet-tasting
growth stocks on
June 3rd. At
that point, it
was at $337.38.
What's been
keeping this
good stock
down?...
Well, the
company reported
after the close
on July 21st. It
was a 15-cent
earnings beat,
on a 34% growth
beat, along with
raised guidance.
I'm shrugging my
shoulders,
saying, it was
pretty good...
Now, it
initially caused
ISRG to sell
off, as
investors were
wrongfully
disappointed by
a headline
revenue number
that appeared
weak. They
wrongfully sold
it. And sure
enough, within
two days, the
shares were
back. So it's
not the quarter
that caused the
problem.
The stock's been
pounded based on
worries about the
medical device
companies after a
lousy quarter from
Medtronic. I
referenced that at
the top of the show.
And, perhaps more
important, a New
England Journal of
Medicine article...
that's the Bible for
these people...
about rising
healthcare costs
that cited...
specifically...
ISRG's DaVinci
machine as an
example. That's not
all. I think the
true culprit is far
more malevolent.
Intuitive Surgical
is a victim of a bad
chart...
That's right, I'm
calling it like I
see it. These
chartists are more
powerful than
they've ever been in
my 31 years. And
this paints a nasty
picture of big
institutional money
managers, dumping
shares
hand over fist...
or at least that's
the conclusion drawn
by Ken Shreve, a
terrific
technician... Shreve
is the guy who got
us out of Seagate,
back on February
3rd. At the time,
the stock was at
$18.84. He allowed
you to sidestep a
46% plunge. He told
us to sell Garmin...
remember the GPS
company... he told
us to sell Garmin on
February 11th, at
$32.42. You avoided
an 18% decline.
We've got to take
this guy very
seriously.
When he says that
Intuitive Surgical's
chart shows the kind
of topping action
that triggers huge
bouts of
institutional
selling. Consider
Shreve a detective.
He's looking through
the charts to find
clues about what the
big money managers
are thinking,
analyzing their
footprints. We can't
even see them. But
he can... to figure
out what they'll do
next.
Let's take a look at
this pictograph of
the action...
Everything started
going wrong for ISRG
back on April 16th,
when it reversed on
heavy volume,
okay...
Read more from this
segment
Read all of
Thursday
night's complete
recap
|
| |
|
| |
|
| |
|
| |
|
| |
Lightning Round
Picks: |
| |
Apple, Inc. (AAPL*)
Jim:
Alright, let's go... Apple's got my $300 price target. Here's the problem with Apple... As I said the other day in a
RealMoney.com article... that, in the end, Apple is still a stock, and all stocks are going down. There's a September 1st product introduction. No one seemed to care today. Everyone cared about it yesterday. Let Apple come down. I suggested a deep-in-the-money call strategy in the book,
Getting Back To
Even, that I think will work perfectly for Apple, right now. Because it's a stock, even though I like it, it's going down. |
| |
All Lightning
Round picks |
| |
|
| |
See
entire week
of Lightning Round
stock picks on
one page,
here
|
| |
Bancolombia (CIB)
Jim:
Yes, you did miss out. The stock has moved too much. Now we have to wait for a pullback. It's one of the best-performing stocks, along with Banco Bradesco and Banco Itau. Those are all Latin America banks that are doing so much better than American banks. Let's wait until we get a 3% handle on that one (i.e., that the yield goes up to 3%, as the stock price goes down), and then we'll pull the trigger. Not up here. |
| |
All Lightning
Round picks |
| |
|
| |
Costco (COST*)
Jim:
The stock rallied $1.30 on that news (that it was buying up land for future stores), and they're also going to go into malls. I think it's all very positive. Costco and Wal-Mart are the two best-acting retailers. Why? Because people think we are going to have a re-recession. Do I want to own Costco here? I sold it higher for
ActionAlertsPlus.com, my
charitable trust. Under $54, I will buy it. The company's buying a lot of stock, by the way. And I've got to tell you, Costco's really well-run. But again, I reiterate that it is a stock, and all stocks are going down.
Price target for Costco: Buy under $54.00 |
| |
All Lightning
Round picks |
| |
|
| |
|
| |
|
| |
|
| |
|
|
