Electro-Optical Science (NASDAQ:MELA) is a small cap ($122.14M) company that is pretty one dimensional. MELA is a firm that's goal is to produce a non-invasive way to diagnose melanoma. It has been public since late October of 2005, and traded side ways since. Currently MELA is trading right under $8 a share (7.93 close today) down from high close of $9.30 May 30th.
However, the price right now is really irrelevant. MELA is going to release results from the trials they are running with their flagship product, MelaFind, this year. If successful, MelaFind would essentially change the way melanoma is diagnosed. Currently, biopsies are performed in order to determine if a mole has cancer. However, this procedure leaves scarring and is expensive. MelaFind would be able to detect cancer without these side effects.
I'm no expert on cancer, medicine, or even health care companies. (Or really any companies for that matter.) But I can see that this company's product has the potential to be in huge demand. The question is whether or not the product will be approved. And that's a big question. If MelaFind doesn't pan out, the company is essentially worthless, at least until they made major changes. The stock would plummet. However, if it does work, there is no doubt it would be incredibly lucrative for any stock holders. A buy out would be a big possibility, which could double or triple current price. Also, the company has enough cash to potentially market MelaFind themselves.
Analysts appear to be optimistic about the company. It has an average rating of 1.7 (1 being strong buy, 5 being strong sell) according to Yahoo Finance. Recently the company briefed investors on the PreMarket Approval (PMA) process at the Needham Biotechnology and Medical Technology Conference in New York. The President & CEO Dr. Joseph Gulfo mentioned he is looking forward to a "busy" end of the year.
I think that the prospects of this company are pretty good. There is a sizable chance that the product could fail, but the studies already performed have yielded great results. Right now melanoma detection is a crude science, which basically involves carving up the patient. Melafind is poised to change all of this. Also, if it succeeds, MELA will see huge growth. There are no other products to suck away profits, this company has put all its eggs in the MelaFind basket.
However, the price right now is really irrelevant. MELA is going to release results from the trials they are running with their flagship product, MelaFind, this year. If successful, MelaFind would essentially change the way melanoma is diagnosed. Currently, biopsies are performed in order to determine if a mole has cancer. However, this procedure leaves scarring and is expensive. MelaFind would be able to detect cancer without these side effects.
I'm no expert on cancer, medicine, or even health care companies. (Or really any companies for that matter.) But I can see that this company's product has the potential to be in huge demand. The question is whether or not the product will be approved. And that's a big question. If MelaFind doesn't pan out, the company is essentially worthless, at least until they made major changes. The stock would plummet. However, if it does work, there is no doubt it would be incredibly lucrative for any stock holders. A buy out would be a big possibility, which could double or triple current price. Also, the company has enough cash to potentially market MelaFind themselves.
Analysts appear to be optimistic about the company. It has an average rating of 1.7 (1 being strong buy, 5 being strong sell) according to Yahoo Finance. Recently the company briefed investors on the PreMarket Approval (PMA) process at the Needham Biotechnology and Medical Technology Conference in New York. The President & CEO Dr. Joseph Gulfo mentioned he is looking forward to a "busy" end of the year.
I think that the prospects of this company are pretty good. There is a sizable chance that the product could fail, but the studies already performed have yielded great results. Right now melanoma detection is a crude science, which basically involves carving up the patient. Melafind is poised to change all of this. Also, if it succeeds, MELA will see huge growth. There are no other products to suck away profits, this company has put all its eggs in the MelaFind basket.
Check out the Electro-Optical Science website for more.
You can see the Needham Biotech presentation on the Investor Relations section.
2 comments:
What do you know about a company called Lucid?
Lucid Entertainment (LUCFF.PK) is the only company I could find with this name on Yahoo Finance. (none of Google btw) So basically I know nothing except the stock trades for like 6 cents, and hasnt really moved from that for a while. If this isnt what your talking about let me know, but even for me, someone who loves small, cheap and risky companies, LUCFF.PK seems a bit out there.
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