Out Fox The $treet

Alphabet made an offer to buy Fitbit with no announcement of a finalized deal. Fitbit is shifting into Premium Service and medical devices, making the stock more appealing. Fitbit is unlikely to accept a deal for under $10, making an agreement unlikely. The stock likely trades lower again on a failed deal. Fitbit  (NYSE: FIT ) surged Monday on  reports  that  Alphabet  ( GOOG ,  GOOGL ) is looking to acquire the fitness tracking company in order to get into healthcare wearables. The stock ended up above $5.50 for a 30% gain on the day, but investors have to question whether CEO Park will accept a deal at these prices and whether one even wants a deal below $10, if at all. My  previous research  has highlighted the reasons the stock has the potential for far more value. Read the full article on Seeking Alpha.  More commentary - WhoTrades   Disclosure: Long FIT. Please review the disclaimer page for more details....

As predicted here, Fitbit ( FIT ) was an easy purchase below $5 last year. The stock was insanely cheap with the cash balance and revenue stream. The move toward medical devices offered a huge upside catalyst.

After the close today, NuVasive (NUVA) reported solid results that easily beat estimates. NUVA is a medical device company focused on developing minimally disruptive surgical products and procedures for the spine. Clearly an attractive product concept but the company was hit very hard last year when the new healthcare bill caused insurance providers to push back on lumbar reimbursements. The stock plunged from nearly $38 in October last year to a low of $22 in December. Since this was a broken stock and not a broken company, Stone Fox Capital recently added NUVA to most of the Opportunistic portfolios. The company reported earnings of $.24 and revenue of $124.5M including a doubling of international revenue to 8% with an office opened up in Puerto Rico and one to open up in Tokoyo later this year. Revenue increased by 14.1% over 2010 showing that growth is back on track. NUVA management continues to expect to eventually move towards a $1B revenue company with several exciting pro...