Saturday, September 27, 2008

Don't Let This Shot at a 10-Bagger Pass You By

this is from the IV MB, and the poster says it's been published from a paid service (Phase I Investor).

>>Don't Let This Shot at a 10-Bagger Pass You By

Like Intuitive Surgical in 2003, Accuray Incorporated (Nasdaq: ARAY) is experiencing a sophomore slump of sorts. Skepticism of the future growth for its noninvasive radiation surgical platform is rampant, especially as the broader economy faces financial turmoil.

And like Intuitive's device, Accuray's CyberKnife machines aren't cheap, costing more than $4 million apiece. But like the da Vinci robot, the CyberKnife is a technology that could single-handedly change the way we treat cancer. Patients will demand access to the technology; hospitals and surgery centers will embrace the new revenue it brings through the door.

...

Even if we have the story all wrong, we still come out ahead. Even if Accuray installs only 35 CyberKnife machines per year for the next five years, we believe the company still has an intrinsic value of $1 billion. At today's prices, we can generate annual returns of about 17%.

In short, it's a perfect setup. If we get the story wrong, we win a little. If our estimates are spot-on, we win huge.

Action to Take: Buy Accuray Inc. (Nasdaq: ARAY) up to $10 per share now. As always, get the best price possible, and plan on holding your shares for the next five years.

We'll be watching the company's execution closely over the coming quarters for sure. But remember, this investment will take time to play out – at least three to five years – just like the 30-bagger opportunity I missed with Intuitive Surgical.

No comments: