Download now: Gold and Silver Mining Stocks

The Best Health Care Stock for 2013

Would You Spend a Thousand to Make a Million?

Written by Briton Ryle
Posted October 22, 2012 at 3:56PM

Ten years ago, a 31-year-old woman went to see her doctor because she was suffering from abdominal and pelvic pain.

She was diagnosed with a severe case of a condition known as endometriosis.

This extremely painful condition — which affects as many as 15% of women — occurs when cells from a woman's uterus start growing around the lining of the stomach and other organs. The condition can destroy the liver and even lead to cancer.

In late January 2004 this woman (whose name is withheld for privacy) reported to the Stanford University Hospital for a hysterectomy.

During the roughly four-hour procedure, her surgeon, Dr. Camran Nezhat, barely touched her. Instead, he operated a "robot surgeon" to perform the majority of the delicate work...

The patient was home recovering the very next day.

The "robot surgeon" that successfully completed the operation is called the da Vinci Surgical System.

The company that makes it is Intuitive Surgical (ISRG).

Back in 2004 when this procedure took place, Intuitive Surgical stock traded between $16 and $18 a share. Today it's trading for $544 a share.

Its 52-week high is $594.89.

The stock has risen 2,811% in less than ten years.

Become a Science Fiction Millionaire

In 1999 Intuitive Surgical didn't have a marketable product. It was just an idea.

Less than 15 years later, sales hit $2 billion — and are still growing better than 20% a year...

brit_chart1_1022

Intuitive Surgical has beaten earnings expectations for the last 11 quarters in a row.  

Intuitive has sold the da Vinci system to more than 1,400 academic and hospital sites; it's now considered standard equipment around the world. 

Intuitive Surgical dominates the surgical robot market, which in 2011 was valued at $2.4 billion.

In the next five years, the surgical robot market is expected to generate $8.5 billion in sales. Intuitive Surgical could account for 75% of that — or $6.3 billion in sales.

A measly $1,000 into Intuitive Surgical in January 2004 would be worth $2.8 million right now.

Most investors don't have what it takes to become a "science fiction millionaire." Maybe it's a lack vision to see what's possible, maybe it's discipline...

It's usually much easier to imagine what can go wrong with emerging technology than to imagine what's possible — what can go right.

Even in the case of Intuitive Surgical, where the technology was already being used in the most advanced hospitals in the world like Stanford and Johns Hopkins in 2004, the vast majority of investors simply missed it.

But when you get right down to it, a $1,000 investment that could become a million dollars in ten years doesn't really sound that risky...

Would You Spend a Thousand to Make a Million?

Right now there's a situation that reminds me of Intuitive Surgical back in 2004...

A small $2.50 company is making its own blood vessels, lung tissue, and tumors for medical research.

Its biggest customers are pharmaceutical giant Pfizer (PFE) and United Therapeutics (UTHR).

In a few years, this visionary company will be making entire organs that could be used for organ transplants.

Frankly, I can't tell you how big of a market custom-made organs for transplants could be...

Billions? Tens of billions? There's no way to know.

But then, nobody knew how big Intuitive Surgical's market could be back in 2004, either — and that didn't stop forward-thinking investors from making millions.

I realize that making human tissue out of cell mixtures sounds like science fiction. But remember, Pfizer and United Therapeutics are already buying tissue from this visionary company. That's a significant seal of approval.

Given the advantages of testing new drugs and therapies with actual living tissue instead of models, I expect this could become a very fast-moving situation.

Profitably yours,

brit's sig

Briton Ryle

follow basic@BritonRyle on Twitter

An 17-year veteran of the newsletter business, Briton Ryle is the editor of The Wealth Advisory income stock newsletter, with a focus on top-quality dividend growth stocks and REITs. Briton also manages the Real Income Trader advisory service, where his readers take regular cash payouts using a low-risk covered call option strategy. He also contributes a weekly column to the Wealth Daily e-letter. To learn more about Briton, click here.



Related Articles

Obamacare Death Watch
It seems impossible that the looming failure of the biggest piece of legislation in a decade wouldn't move the market... but there it is.
Yet Another Group of Stocks Making Record Highs
Uncle Warren's done it again... even if he had to rub Obama's back in the process.
Successful Biotech IPOs
Kythera Biopharmaceuticals and Intercept Pharmaceuticals opened trading last week at the high ends of their price ranges...


What is the benefit of the email subscription?
While the Wealth Daily website offers access to the articles and reports, as a newsletter subscriber you will be among the first to receive access to the valuable advice, delivered directly to your inbox daily, and you will have access to deals on our exclusive services.
Greece's Keynesian Experiment
Big Government Doesn't Work
China's World Domination
And Why it's Not Going to Happen
Should Greece Pay Its Debt?
The Case for a Greek Default
Gold's Early Warning
Deflation May Be Coming
There's No Escaping Austrian Economics
Fed Bubble is Popping
Guaranteed Returns in Cotton Futures!
Uncle Sam's $5 Billion Cotton Scam
Investing in Rhenium
More Valuable Than Oil and Gold Combined!
Greece is Screwed!
10 Ways to Protect Yourself from the Global Economic Crisis
Investing in the Next Silver Bull Market
Silver Short Selling: Manipulation or Opportunity?
The Best Reason to Buy Silver
A Long-term Outlook for Silver