Norman Levine Wright Medical Group Inc WMGI-Q BUY Jun 23, 2014

Body parts company. Extremities, especially the foot area. Earnings and sales are growing nicely. Are the biggest in the ankle business and are a potential target for an acquirer. Sold off recently because of an acquisition they made. Earnings are growing very, very nicely in the meantime.

Hospital supplies. Tends to be a little more volatile because it is a turnaround story. Also, doesn’t have a dividend. If you don’t like volatility, consider Covidian (COV-N) which is a better alternative. He believes ultimately this will be taken out because the CEO has a track record of going in, fixing up and selling companies.

This is a turnaround story, but eventually will be a takeout story. It is probably 60%-70% done, but you could Buy here on the dip. If you don’t own, you could probably get 30% upside from this point.

(A Top Pick July 31/13. Up 12%.) This company is in prosthetics, specializing in extremities such as toes, fingers, wrists, etc. If you have health insurance, you are more likely to get work that needs done than if you don’t have it. Has been held back compared to some competitors because there have been takeovers of competitors. Would still be a buyer. $36 in 12 months would be a reasonable estimate.

Was a turnaround story. Regulatory overhang, costs. That is all behind us. The CEO could be getting ready to leave, apparently and they thought someone would snap up this company. Still thinks there is some upside.

Body parts. A turnaround situation. They are a leader in their area. There is an FDA decision coming down soon on an appeal to one of their products being rejected, but he does not think it is significant. If you are working with a health plan then you are more likely to get elective surgery done.

Owned it because the CEO had a history of turning companies around. Until last week they were doing a good job of that until they decided to do an acquisition rather than being sold, so he sold it. Not sure how long the CEO will stick on.

(A Top Pick May 2/14. Down 13.72%.) Had liked its business and liked it because it was a turnaround stock. The new CEO had a good history of turning companies around and then selling them. Instead of turning this one around, he made an acquisition. He wasn’t happy with this, so sold his holdings.

(Top Pick Apr 24/14, Down 11.62%) He bought before there was an indiscretion between the CEO and one of his officers. They acquired a competitor and then he sold out and made a nice profit.