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Sally Jones
Sally Jones
Articles (580) 

Guru Fisher Cuts NUVA - Medical Insurance Resists NuVasive Procedure

April 11, 2013 | About:

With a market cap of $9.24 billion, NuVasive Inc. (NASDAQ: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.

Use the GuruFocus Value Screen to find 52-Week Lows and discover potentially deep value stocks held by billionaire Guru investors.

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior 2 weeks. The report time lag can be as short as 2 days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

Rating: 3.0/5 (7 votes)


Traderatwork - 4 years ago    Report SPAM
"...has a reputation for making accurate calls,...". Really?

2008 he said to buy Citigroup at 25.00 drop to 1.5 then reverse split 10: 1 means your $250 a share C is now 45+. And he said buy BAC at $34, it drop to $3+, today 12+. And you can look it up in forbes magazine website especially 2006 to 2008 articles.

He own 483 stocks and basically he buy anything that move. There will be some stocks went up, some go down and some didn't do a thing.

As the wise say,

If you want others think you can predict the futures, make a lot of predictions.

Phillip Fisher (his father) say you invest small number of good companies and hold for a long term not buy a little of everything.

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GuruFocus has detected 1 Warning Sign with NuVasive Inc $NUVA.
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