With a market cap of $9.24 billion, NuVasive Inc. (NUVA) is the minimally invasive spine surgery company with a portfolio of 80 products used to revolutionize the way surgeons work with spine problems. GuruFocus research shows the stock is up 31% over the last 12 months, with the current share price at $21.56. The company stock has a P/E ratio of 275.5, a P/B ratio of 1.74 and a P/S ratio of 1.48.
In first quarter 2013, Guru Ken Fisher, CEO and chief investment officer of Fisher Asset Management, reduced his NUVA position by 23.45%. As of quarter ending March 31, 2013, Ken Fisher sold 108,900 shares at an average price of $18.26, for a 15.7% gain. His current NUVA shares stand at 355,475. The current share price is $21, up 15% from average.
A review of Fisher’s quarterly NUVA buys and sells since third quarter 2012 shows an average cost of $21 per share, and a gain of only 1% on this holding. Fisher’s highest gaining quarter on NUVA was fourth quarter 2012 for a 43.9% gain.
His holding history:
According to NuVasive’s Chairman and CEO Alexis V. Lukianov, “NuVasive is changing spine surgery. To be disruptive, we are taking a long-term vision and executing to a long-term plan.”
In his 2012 shareholder letter, Lukianov stated: “The shift toward minimally invasive spine surgery continues to unfold, providing a backdrop of growth for companies like NuVasive that are driving that shift. Minimally invasive solutions now represent an estimated 25% of the U.S. spine market. And we believe that as superior patient outcomes and clinical evidence continue to drive surgeon adoption, less invasive solutions will become the standard of care in spine.”
The company cites insurance providers as an obstacle to growth. According to NuVasive’s Lukianov, "Unfortunately, dynamics within the U.S. spine market have offset much of that growth over the last few years, and 2012 was no exception. Commercial insurance providers continue to push back against lumbar fusion procedures by denying or delaying coverage for legitimate treatment and negatively impacting procedure volumes. That being said, surgeons and societies are learning how best to navigate these obstacles to provide appropriate care for their patients."
The Fisher Asset Management LLC portfolio, as of April 9, 2013, lists 483 stocks, with 54 new stocks. The total portfolio value is $3.76 billion, with a quarter-over-quarter turnover of 8%.
See Ken Fisher’s updated top buys, sells and holdings:
Son of the legendary investor Philip A. Fisher, Guru Ken Fisher, also legendary, has a reputation for making accurate calls, often in direct opposition to the Wall Street collective.
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