MAKO Surgical (MAKO): big institutions are swallowing up shares

By Michael Cintolo, VP of Investments and Editor of Cabot Market Letter and Cabot Top Ten Trader
From Cabot Wealth Advisory 8/18/11

I still think it’s a bit too early to really dig in and find those names that have either resisted the downturn, or got hit but snapped back with power.  The reason is that nearly every growth stock has some serious damage on its chart, which will take time to repair.  Thus, while it’s nice to see some things snap back, even the most resilient names likely need a few weeks to consolidate.

However, one thing I do like to look for is unique, extraordinary volume clues to tell me that, at the very least, some big institutions are swallowing up some shares of a favored growth name.

One stock with such volume clues is MAKO Surgical (MAKO).

MAKO Surgical is a classic growth stock, though it’s very small (just $58 million in revenue during the past year!).  But it’s developed a robotic surgical system used for knee and (by the end of the year) hip resurfacing and replacement.  The firm isn’t profitable, but it’s been growing revenues at an 80% clip.

The company reported great earnings last Monday evening (August 8) and that resulted in the stock leaping more than 30% on its heaviest volume ever; for the week, shares vaulted 32% on the biggest weekly volume total ever. The chart is very wide-and-loose, so I can’t say it’s a screaming buy, but it’s certainly one to watch.


Mike CintoloMichael Cintolo
Vice President of Investments and Editor of Cabot Market Letter and Cabot Top Ten Trader

A growth stock and market timing expert, Michael Cintolo is editor of Cabot Market Letter and Cabot Top Ten Trader. Since joining Cabot in 1999, Mike has uncovered exceptional growth stocks and helped to create new tools and rules for buying and selling stocks. Perhaps most notable was his development of the proprietary trend-following market timing system, Cabot Tides that has helped Cabot place among the top handful of market-timing newsletters numerous times.