6 replies to this topic

[dcengr]

ISRG

Looks like you can increase the market cap of a company by billions with only a few milllion in extra sales..

With 37M shares outstanding, yesterday's $48 surge increased the market cap of that company by how much?

P/E of this company is now close to 100.. imagine what this company can be worth if it just sold some of its stock and increased its reported profit by another $60M for next quarter.

On Thursday, Intuitive reported profit of $30.7 million or 79 cents a share, up from $16.7 million or 44 cents a year ago.

[arbman]

Good catch, the whole index pales next to the ISRG

[ogm]

Now, remember, there is no speculative activity in the market, and dozens of hedgehogs aren't crowding into these stocks with 10 to 1 leverage. Everyone is very bearish. It all makes sense.. they report 14 mil more profits and they gain 1.8 billion in market cap. Because 200 years from now they will justify it. As I said, NDX represents speculation. And extreme relative strength in NDX represents extreme speculation

Edited by ogm, 21 July 2007 - 04:09 PM.

[Iblayz]

AAPL has surpassed MSFT as the big kahuna in the NDX. AAPL added 5.37 points to the index yesterday and ISRG only added 2.15. AAPL gained 3.75 and GOOG lost 28.47. But GOOG only cost the index 4.76 points.

[hedgehawk]

ISRG sold the same perception that TASR sold a long time ago, that "every police station will soon have TASRs" so people who are buying into ISRG think that "every hospital will soon have a robot hospital machine." Perception is everything. As silly as it seems, the prudent thing is to buy ISRG and ride that pony along with everyone else then sell it when it starts to roll over. I know that it is not that easy.....Theres just to much irrational exubarance. I think that money will switch from momo plays like AMZN, GOOG, RIMM and AAPL and push ISRG higher.......since they all look tired short term. Thats how these folks think...ride it to $250.00 a self fullfilling prophecy. I dont think they even think beyond that small sphere, it is going to 250.00, that in it self is the reason to buy it. The monkey see monkey do type of situation with ISRG. I will look for an entry point on Monday to go long ISRG. How high it goes who knows. When you cant beat'm, join'm I say.

[arbman]

Do you guys know whether they add extra strikes to the option chains in these situations? ISRG is now out of the highest strikes...

[hedgehawk]

Yes, they add them you can use 888options.com to see them. Unfortuneately, they are illiquid, and have wide spreads. The implied vol looks inline compared on an historical basis, I would think if ISRG continues to show strength on Monday then they will increase the implied vol which would be cool if you own the option prior to the premium increase. Also I meant to mention that when they are adding strikes like that intraday, as the stock increases, that your broker may not have the new option symbol in their system. You have to call them to ask them to add it. I think they refresh the new symbols on a nightly batch run, hence the reason why the symbol may not be in the brokers system real time. I see strikes on the August options up to $250.00 on 888options.com