Chart Glance – MAKOs chart glance looks like a broader, reverse head and shoulder-type pattern. MAKO is making “higher/ highs” and “lower/ lows.” Technical’s indicate that MAKO is in the early stages of up trending to higher prices and taking out recent 52 week highs ($43.00).
50 DMA ($35.03), 100 DMA ($33.27), 200 DMA ($32.91).
Support 1: $36.18 Support 2: $32.10
MAKO is a growing, innovative, med-tech name that specializes in surgical, “hip-replacements” and specialty-medical devices company. Investors should keep MAKO on their radar after Asahi Kasei buys ZOLL Medical for $2.2 Billion. Asahi Kasei pays a 24% premium to ZOLLs closing price on Friday at 93$ a share. MAKOs 4th Quarter results were quite impressive. Revenue rose 122% and the company sold around 10 hip-enabled RIO systems in Q4. MAKOs price target was raised to $50 from $37 at Piper Jaffrey, and keeps an “Overweight rating.” MAKO will present at the Barclays Capital 2012 Global Healthcare Conference in Miami Beach on Wednesday, March 14th, 2012(2PM ET). In my opinion, MAKO is a potential, “take-out” candidate and currently the MAKO March 40 Calls looks reasonably cheap trading around $0.35.
By Greg Zimny