Why RTI Surgical, Inc. Shares Temporarily Spiked Higher

RTI Surgical shares temporarily surged higher following an approval in Europe and the introduction of two new products. Can its shares head even higher?

Mar 12, 2014 at 1:53PM

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 RTI Surgical (NASDAQ:RTIX), a producer of orthopedic and surgical implants that aid in the natural healing of human bone and tissues, soared by as much as 14% early in the morning after announcing CE mark approval for Fortiva porcine dermis in Europe last night, and announcing the launch of two new bone grafting solutions at the American Academy of Orthopaedic Surgeons (AAOS) annual meeting. Shares have since cooled and are now up just 2% as of this writing.

So what: The big boost comes from its approval to CE mark Fortiva porcine dermis throughout Europe. This implant is designed to be most often used in hernias and other body wall defects as a reinforcement or to help supplement the healing of surgically repaired or ruptured soft tissue membranes. Fortiva is already approved in the U.S. and launched during the summer of 2013.

The other good news relates to the launch of NanOss Bioactive 3D, a "synthetic three-dimensional bioscaffold which supports bone formation," and map3 Cellular Allogeneic Bone Graft, which contains three critical elements needed to generate and maintain new bone, at the upcoming AAOS meeting.

Now what: Today's double dose of positive news events certainly helps RTI Surgical, which had predicted a slight sequential quarterly revenue decline in the first quarter of fiscal 2014. Looking forward, though, these new products, coupled with organic growth from its existing product line, look very capable of producing double-digit growth over the next couple of years. As the global population ages, the need for regenerative therapies such as what RTI Surgical provides is only going to grow in importance. While its forward P/E of 31 might be a bit scary at the moment, I can see a scenario where RTI heads even higher from here.

RTI Surgical shares may have jumped today, but even with its double-digit growth potential is unlikely to be able to keep up with this top stock 
There's a huge difference between a good stock and a stock that can make you rich. The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.

The Motley Fool has no position in any companies mentioned in this article. 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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information