Long Term Trade Idea FOXH

We mentioned KYPH as a long opportunity recently in the medical device space. Another company we like a lot is Fox Hollow Technologies. FoxHollow Technologies, Inc. designs, develops, manufactures and sells medical devices primarily for the treatment of peripheral artery disease (PAD). PAD results from the accumulation of plaque in arteries, most commonly occurring in the pelvis and legs. The Company’s first product, the SilverHawk Plaque Excision System (SilverHawk), is a minimally invasive, disposable catheter system that treats PAD by removing plaque in order to reopen narrowed or blocked arteries. The Company introduced the SilverHawk in the United States for treatment of atherosclerosis in the peripheral vasculature. FoxHollow Technologies markets the SilverHawk through a direct sales force in the United States, primarily to interventional cardiologists, as well as to vascular surgeons and interventional radiologists. These guys have been growing their sales rapidly and the stock has been hammered of late. The stock may be putting in some type of bottom by the looks of the daily chart. I wouldn’t doubt it at some time if this company was bought by a JNJ or a BSX to compliment their full bag of products in this category. The valuation is pretty cheap in here and I will be owning some stock in here and buy some protective puts below 20.