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MELA: A Speculative Stock with Huge Potential

by Paul Goodwin
July 7th, 2009 · No Comments · Charts, Emerging Markets, Growth Investing, Healthcare, Investing, Stocks

My stock suggestion today is in the spirit of adventure. It’s a medical technology company that doesn’t really have revenues, much less earnings, and it doesn’t have a product approved for sale. What it has is a great idea for a hand-held device that will enable dermatologists to scan skin lesions to determine whether they are melanomas.

The company is Electro-Optical Sciences (MELA), and the device-called the MelaFind-uses light at various wave-lengths to scan the suspicious lesion. It then uses its database of melanoma images to calculate a diagnosis.

View the full MELA chart at Wikinvest

With a huge age cohort of sun-worshiping Baby Boomers now approaching the danger years, the diagnosis of melanoma, the leading cause of death from skin cancer, is a big deal. The MelaFind is non-invasive, quick, and reportedly has a 95% accuracy rate.

Electro-Optical has submitted a Pre-Market Approval form to the FDA for MelaFind. The FDA has put the decision on a fast track, and the estimated decision date is some time this December.

This is a low-priced, speculative stock, but the potential payoff is huge. If you’re the kind of investor who likes to spin the roulette wheel every once in a while, this may be for you.

If, on the other hand, you like the idea of high potential emerging market stocks, you should consider the Cabot China & Emerging Markets Report that I write. Emerging markets can be a wild ride, but they have beaten the developed markets all hollow this year. You can get a no-risk trial subscription by clicking here.

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