I notice Electro-Optical Sciences, Inc. (NASDAQ CM) stock symbol MELA on the new 52 week high price list this morning and trading at much greater than average volume. I remember reading that Electro-Optical Sciences, Inc. is in the medical instruments business. I interpret the quarterly balance sheet and income statements as no revenue, net income negative and about stable, and decreasing cash, assets, equity, and liabilities. Companies that are in the medical business can not legally sell goods or services until USA Food and Drug Administration (FDA) approval. I remember instances - Amgen about year 1991 for example - where the company reports little or no earnings yet the stock price rallies a lot. In the Amgen case, I recall once FDA approval of a new drug was granted the company started reporting huge sales revenue and earnings. I disregard income statements and balance sheets of newer medical type companies because of the FDA approval distortion of sales and earnings. I observe a price breakout from a long trading range on high volume. If Electro-Optical Sciences, Inc. continues the process of FDA approval then I suspect MELA stock price could increase significantly over the next few years. I do not own the stock, nor do I intend to. <img src=http://www.elitetrader.com/vb/attachment.php?s=&postid=2556073 \img>
A bit more background on MELA. The breakout and yesterday's new high are both all-time high's and occurred based on a Barron's mention over the past weekend. Their product, a detector for early stage melanoma was accepted by the FDA back in June for expedited market approval. Has 20MM outstanding, 20% institutional ownership and almost 7% insider ownership.