Out Fox The $treet

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...

Our philosophy isn't to pick stocks based on ones potential for a buyout, but this theStreet.com report caught our attention. Harry Rady of Rady Asset Management owned biotech company Cephalon (CEPH) that recently got a buyout offer from Valient International (VRX). Since Stone Fox Capital also owned CEPH in our Opportunistic folios it was intriguing to see what else he picks, since we might have similar investment styles. Looking over his list we actually already own one of his top picks in Savient Pharma (SVNT). He also lists Activision Blizzard (ATVI) and NuVasive (NUVA) that have been on our radar. Might be time to double up research on these picks. Rady sees 100% gains in both SVNT and NUVA and interesting that they are both in the medical/health sector like CEPH. SVNT has been a long term holding that we've ridden to the $20s only to see it crash back below $10 when the sale of the company failed. With the new management team in place, they appear to be the stronges...