The Cramer Report - April 10, 2006
HOME	'Pick of the Week'	NUVA  (NUVASIVE, INC. )
	I want to step up to the plate and put my credibility back on the line! I'm bringing back the stock of the week and Cramer's pick is: Nuvasive (NUVA)! This is a medical device maker that focuses on spinal problems.  They make all kind of gear for minimally-invasive back surgery. I regard this as fabulous play on aging baby boomers with bad backs who are in the house of pain. NUVA is my stock of the week.  But what exactly does that mean?  It does not mean that, if you buy NUVA today, you will have made money by Friday.  We're not going to be that stupid.  This is no Crystallex. The purpose of my stock of the week is to highlight something that I think could be really big - what I used to call at Goldman Sachs a 'Blue Plate Special'! I'm making NUVA my stock of the week because I think you should buy it this week, after all the people come in after hours, screw it up, and then sell it, and violate all my rules. It's about timing.  Last week was wrong.  Next week might be wrong.  You've got a great entry point right now, and I think you should take advantage of it. Back in February, NUVA lowered its revenue guidance.  Since then, the stock has been pounded down from 20 to 17 and change.  I think it's now too cheap.  I think it represents a great minimally-invasive buying opportunity. Seems counterintuitive?  I'm telling you to buy a stock because management lowered expectations?  Because they essentially missed the numbers?  Isn't the mantra 'don't buy, don't buy'?   No.  Let me tell you why. Cramer draws a big, bright line - fluorescent - between broken stocks, and broken companies. Broken stocks - buy, buy, buy!  If the company is good. Broken companies - sell, sell, sell!  You know.  You shun broken companies, but you need to swarm around broken stocks. NUVA is a small, fresh, fast-growing little co.  They've only been selling their product for three years. Even with lowered guidance, get this, they're forecasting 41-46% revenue growth next year.  Why is that so important?  Most of the companies that I highlight as positive - I'm thrilled that they have double digit growth!  40% growth is just nirvana! Just because they guided down a little, we shouldn't right off that really hefty growth. You know, you see the same story with Kyphon (KYPH). They're another little medical device co. With steroidal growth - which I highlighted.  And, when they missed numbers - again, buying opportunity.  Buy, buy, buy! How do you tell if something is a broken stock, or a broken co., when it misses its numbers? Broken companies are big, mature steady growers.  When they miss their numbers or guide down, I regard it as a catastrophic event.  Clearly signaling that something's off the tracks.  That co's done.  It won't get the growth investors back on board anytime soon. But, when a young fast-growing company. Guides down, it only loses the growth for a short period of time. I call it, it's time in the 'penalty box.'  Before the growth money comes flowing right back.  Right now, NUVA is in the penalty box.  Is it a major penalty?  I regard it as a 2-minute minor penalty. I think you need to buy it now, before it gets back on the ice.  That's why it's my stock of the week. What about the company?  We know it's got great growth.  We know that the spine fusion market is a $2.9 billion a year market. We also know that minimally invasive surgery is the way to go - it's good for everyone.  Patients get less pain and they go home earlier.  So you're HMO is real happy. Hospitals spend less time treating the patients; less time for a staph infection in the hospital.  And the insurance companies - the one's who really call the shots - get to pay less for medical care.  Everybody wins! NUVA also has a great pipeline;  they've got an artificial disc that preserves a lot of motion.  It's more than five years out, but it could be a huge moneymaker that's worth waiting for.  I love a good pipeline in the morning! The bottom line!:  you need to get into NUVA now on pin action.  I think that this one could even give you a double!