Wednesday, August 01, 2007

Hit #176 (DJO)

DJO (DJO), formerly called dj Orthopedics, is being acquired by Blackstone Group for $1.6 billion in cash. The offer, of $50.25/share makes for a gain of 190% over my average cost of $17.31.

This comes just weeks after Blackstone, with others, bought another related public company, Biomet (BMET). Among the remaining, Smith & Nephew (SNN) looks like the next likely target in the sector.

For those looking at speculative smaller players, Alphatec (ATEC), Hanger Orthopedic (HGR) and Langer (GAIT) provide growth opportunities, with Hanger looking like a sound bet for the long term.

Previous hit - Rural Cellular (#175)


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