Should Investors Bail on MAKO Surgical?

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The following video is part of our "Motley Fool Conversations" series, in which analyst John Reeves and advisor David Meier discuss topics relating to their 10-Bagger portfolio.

It's been a rough ride with MAKO Surgical recently. The company lowered its system sales and guidance numbers again, and the stock fell significantly. John and David are holding on to their shares, but they're not ready to buy more just yet. There will be an earnings call soon, though investors learned recently that CEO Maurice Ferre will take over the sales organization for the company. Part of the problem is that the sales force hasn't been able to move past the early-adopter customers and into the early majority customers, like big hospital systems. With procedures continuing to rise, the company will continue to collect more and more outcome data that can influence those more pragmatic customers. The trend for more knee and hip replacement surgeries is still there. And looking at Intutive Surgical's adoption rates, MAKO seems to compare well. There's still plenty of competition from Stryker, Zimmer Holding, and Johnson & Johnson's DePuy. But MAKO's offering continues to resonate. John and David look forward to learning more about how the company is going to win the customers that will drive its next phase of growth.

MAKO Surgical has struggled mightly of late. There's no getting around that. If you like to learn more about another compelling investing idea, then you should check out our new free report, "The Motley Fool's Top Stock for 2012." In it, our chief investment officer identifies his favorite company for the year. To access the report before the rest of the market catches on, click here -- it's absolutely free.

The article Should Investors Bail on MAKO Surgical? originally appeared on Fool.com.

John Reeves and David Meier have no positions in the stocks mentioned above. The Motley Fool owns shares of Intuitive Surgical, Johnson & Johnson, MAKO Surgical , and Zimmer Holdings. Motley Fool newsletter services recommend Intuitive Surgical, Johnson & Johnson, MAKO Surgical , and Stryker. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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