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Power Rankings: January 31st, 2012

Robin Young's Entirely Subjective Ordering of Public Orthopedic Companies

This Week: Orthopedic equities have just had the best January in years. In the last 30 days, for example, TranS1 is up 63%, MAKO is up 42%, NuVasive is up 29%, Tornier is up 19% and Conmed and Orthofix are both up 15%. Clearly stock pickers were digging in the bargain bins and finding some very attractive ortho stocks.

Rank	Last Week	Company	TTM Op Margin	30-Day Change	Comment
1	1	Zimmer	27.75%	13.81%	The analyst upgrades are piling up. Latest is Piper Jaffray. Even trading 14% higher than last month, ZMH still 2nd cheapest ortho stock.
2	3	Orthofix	14.72	15.06	Expanding biologics footprint with MTF. Earnings expectations just took another ratchet up.
3	2	Stryker	25.23	11.34	Fourth quarter earnings surged because SYK’s portfolio of edurg plus ortho is a great combination.
4	5	NuVasive	7.26	29.15	Up 29% in a single month, clearly NUVA hit a long-term bottom and was way oversold a month ago.
5	10	Conmed	9.65	15.94	Analysts looking for zero sales growth in Q4, but rising margins. Deal with MTF was very creative. New growth?
6	4	Medtronic	28.63	5.60	MDT’s period of decline is over in spine. We think that overall spine product revenues will be higher in 2012 than in 2011.
7	7	Symmetry	6.45	(4.84)	SMA had its moment in the sun but now returns to the bargain bin of ortho stocks.
8	8	Smith & Nephew	22.80	3.47	Analysts are pretty down on SNN. Flat to down earnings on, surprise, a 6% rise in sales. SNN is not getting respect.
9	6	Exactech	7.69	6.95	Zimmer, Stryker and Biomet all had good news to end the year. Will EXAC follow suit?
10	9	Johnson & Johnson	26.33	0.17	Demand for ortho equities coming from growth stock buyers and stock pickers. JNJ, unfortunately, doesn’t fit that critieria.

Top Performers Last 30 Days

	Company	Symbol	Price	Mkt Cap	30-Day Chg
1	TranS1	TSON	$3.05	$83	63.10%
2	MAKO Surgical	MAKO	$37.05	$1,543	42.50%
3	NuVasive	NUVA	$15.73	$664	29.15%
4	Tornier N.V.	TRNX	$20.91	$821	18.74%
5	Conmed	CNMD	$29.45	$822	15.94%
6	Orthofix	OFIX	$40.10	$738	15.06%
7	Zimmer Holdings	ZMH	$60.50	$10,840	13.81%
8	Kensey Nash	KNSY	$21.99	$190	13.04%
9	CryoLife	CRY	$5.30	$149	12.05%
10	Stryker	SYK	$54.90	$21,009	11.34%

Worst Performers Last 30 Days

	Company	Symbol	Price	Mkt Cap	30-Day Chg
1	RTI Biologics Inc	RTIX	$4.00	$221	-11.50%
2	Integra LifeSciences	IART	$29.22	$784	-5.56%
3	Symmetry Medical	SMA	$7.66	$278	-4.84%
4	ArthroCare	ARTC	$31.06	$855	-0.45%
5	Johnson & Johnson	JNJ	$65.56	$179,034	0.17%
6	Synthes	SYST.VX	$170.67	$20,272	2.17%
7	TiGenix	TIG.BR	$0.92	$84	3.30%
8	Smith & Nephew	SNN	$48.26	$8,626	3.47%
9	Alphatec Holdings	ATEC	$1.85	$165	4.52%
10	Medtronic	MDT	$39.28	$41,454	5.60%

Lowest Price / Earnings Ratio (TTM)

	Company	Symbol	Price	Mkt Cap	P/E
1	Medtronic	MDT	$39.28	$41,454	11.80
2	Integra LifeSciences	IART	$29.22	$784	12.07
3	Zimmer Holdings	ZMH	$60.50	$10,840	12.58
4	Johnson & Johnson	JNJ	$65.56	$179,034	13.11
5	Smith & Nephew	SNN	$48.26	$8,626	14.03

Highest Price / Earnings Ratio (TTM)

	Company	Symbol	Price	Mkt Cap	P/E
1	Wright Medical	WMGI	$17.35	$682	36.91
2	RTI Biologics Inc	RTIX	$4.00	$221	25.00
3	NuVasive	NUVA	$15.73	$664	23.48
4	ArthroCare	ARTC	$31.06	$855	21.72
5	Synthes	SYST.VX	$170.67	$20,272	21.60

Lowest P/E to Growth Ratio (Earnings Estimates)

	Company	Symbol	Price	Mkt Cap	PEG
1	Integra LifeSciences	IART	$29.22	$784	0.48
2	Orthofix	OFIX	$40.10	$738	0.88
3	RTI Biologics Inc	RTIX	$4.00	$221	0.88
4	Zimmer Holdings	ZMH	$60.50	$10,840	1.37
5	Stryker	SYK	$54.90	$21,009	1.39

Highest P/E to Growth Ratio (Earnings Estimates)

	Company	Symbol	Price	Mkt Cap	PEG
1	Wright Medical	WMGI	$17.35	$682	3.76
2	NuVasive	NUVA	$15.73	$664	3.34
3	Kensey Nash	KNSY	$21.99	$190	2.60
4	CryoLife	CRY	$5.30	$149	2.23
5	Johnson & Johnson	JNJ	$65.56	$179,034	2.12

Lowest Price to Sales Ratio (TTM)

	Company	Symbol	Price	Mkt Cap	PSR
1	Symmetry Medical	SMA	$7.66	$278	0.77
2	Alphatec Holdings	ATEC	$1.85	$165	0.96
3	Integra LifeSciences	IART	$29.22	$784	1.07
4	Exactech	EXAC	$16.46	$216	1.14
5	Conmed	CNMD	$29.45	$822	1.15

Highest Price to Sales Ratio (TTM)

	Company	Symbol	Price	Mkt Cap	PSR
1	TiGenix	TIG.BR	$0.92	$84	135.32
2	MAKO Surgical	MAKO	$37.05	$1,543	34.84
3	Synthes	SYST.VX	$170.67	$20,272	5.50
4	Bacterin Intl Holdings	BONE	$2.73	$111	4.21
5	Tornier N.V.	TRNX	$20.91	$821	3.61

PSR: Aggregate current market capitalization divided by aggregate sales and the calculation excluded the companies for which sales figures are not available.