Access Update – #12

You may have seen the bearish article on Electro-Optical Sciences (Nasdaq: MELA) by Motley Fool yesterday. I haven’t received one e-mail on the subject, so I assume none of you are particularly concerned. However, in case you are and just haven’t communicated that to me, let me rebut their arguments.

It’s apparent they did little more than look at the income statement and balance sheet. Fool saw a stock that has jumped in the past few months, realized the company has no revenue and therefore presumes it’s a dog. Granted, MELA is not right for everyone. You need to be able to tolerate some risk in order to get involved in this name.

Fool says MELA does not “appear capable of generating cash any time soon.” I guess that depends on your definition of “soon.” We believe that if the phase III results are strong, FDA approval could occur before the end of the year, enabling MELA to begin selling MelaFind within the next 12 months. Considering the company is not in danger of running out of cash in the near future, that seems soon enough for us.

Fool also tries to paint MELA as a failure of a company by stating that it “still has nothing to sell after nearly 20 years in business.” While it’s accurate that the company is not selling anything at the moment, it has successfully commercialized a product and sold that business in order to focus its efforts on MelaFind.

We welcome debate about our recommendations. Our egos are in check and we can admit we even learn some things arguing with bears. But please do the research before panning or picking any stock.

New Report Out This Week

We will be releasing our new recommendation either tomorrow or Thursday. Keep your eyes on your inbox. If you were unable to get in on MELA because the price rose too quickly, don’t fret. I expect this next stock to have equally explosive upside.

As a reminder, we will host our conference call with management of this new recommendation on Wednesday, May 28 at 12:30 p.m. ET/ 9:30 a.m. PT. Further details to follow.

Let’s Hear From You

We want to hear your story. If you bought MELA, let us know how you’re making out. Feel free to include compliments, criticisms and all other feedback. Please send them to research@accessresearchgroup.com .
Marc Lichtenfeld
Director of Research
Access Research Group

Stock
Symbol
Current Price
Comments

Electro-Optical Sciences

MELA

$7.24

Buy up to $5.75