NuVasive Shares Plunged: What You Need to Know

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of NuVasive (Nasdaq: NUVA  ) slumped more than 11% in early trading before closing down 8%. Investors apparently didn’t like the terms of an $80 million bid to acquire Impulse Monitoring.

So what: Color me unsurprised. While the beginning of the press release is long on hyperbole -- calling it a "strategic foray" into an $800 million market -- the announcement closes with the sad news that the deal will be immediately dilutive ($40 million of the purchase price will be paid in stock) yet won't offer any earnings upside before 2012.

Now what: To be fair, NuVasive is making a longer-term bet on the need for less-invasive spinal surgery, and Impulse Monitoring's technology could induce doctors to try the company's products. Meanwhile, Intuitive Surgical (Nasdaq: ISRG  ) and MAKO Surgical (Nasdaq: MAKO  ) have paved the way for using tech intelligence in conducting sensitive surgeries. Is that enough to get you to buy shares of NuVasive? Please weigh in using the comments box below.

Interested in more info on NuVasive? Add it to your watchlist by clicking here.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

Motley Fool newsletter services have recommended buying shares of MAKO Surgical and Intuitive Surgical. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 30, 2011, at 12:09 PM, Baalsitch wrote:

    Do you think it might also have to do with the recent court ruling in Medtronics suit against them?

  • Report this Comment On October 03, 2011, at 1:05 PM, PRSWILL wrote:

    Comparing Nuvasive to Intuitive and Mako makes zero sense. While all three companies are interested in minimally invasive surgery, they are not in the same markets. Impuse is a Neuro-monitoring company used to protest the nuro structures on the spine and extremities during surgery. Intuitive manufactures robots for surgery- as does Mako. NUVA is a spinal implant company - no robots, etc. This is not a good comparision. Compare NUVA to Medtronic who also offers neuro-monitoring services and implants. Spinal implants are getting battered and the trend will continue for quite some time.

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