We are well aware of price of the Mazor (MZOR: $39.60) these past few days. The stock has been downgraded by a few firms due to valuation. Hmmm. What does that mean? It means the stock has gone up, perhaps higher than they ever thought. And yes, we know the stock has gone up. We are way up on the stock since we added it in the teens last year.
Needham & Company restated a hold rating in a research report on May 11th. First Analysis downgraded shares from an overweight rating to an equal weight rating and boosted their target price for the company from $28 to $38 in a research report on the same day. Wells Fargo downgraded shares from an outperform rating to a market perform rating in a research report on May 11th as well. These aren’t stellar reports but they aren’t that bad either. They are just protecting themselves.
The recent downgrade was May 17th, a week ago, with nothing new since then. The stock is volatile and traded as high as almost $46 on the 18th, $45 on the 19th, and $43 on Monday of this week. It wasn’t until yesterday that the stock really sold off. The point is that it’s not the end of the world. However, we don’t know where the stock is going. We know where the COMPANY is going. We believe the COMPANY is doing well. Super well. But maybe the market will drop the stock to $35 or $30 and that would be devastating.
So what to do from here is up to you. We are going to stick with it a little bit longer and watch for it to get back on track. If it doesn’t we will exit with well over 100% gains.