Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, skin-cancer screener Electro-Optical Sciences (NASDAQ:MELA) has earned a respected four-star ranking.

With that in mind, let's take a closer look at Electro-Optical's business, and see what CAPS investors are saying about the stock right now.

Electro-Optical facts

Headquarters (founded)

Irvington, N.Y. (1989)

Market Cap

$149.4 million


Health-care equipment


President/CEO Dr. Joseph Gulfo (since 2004)
CFO Richard Steinhart (since 2006)

Return on Assets (average, last three years)


Cash / Debt

$7.7 million / $0 debt

Other Highly Rated Medical Equipment Stocks

Baxter International (NYSE:BAX)
Stryker (NYSE:SYK)

CAPS Members Bullish on MELA Also Bullish on

Johnson & Johnson (NYSE:JNJ)
General Electric (NYSE:GE)

CAPS Members Bearish on MELA Also Bearish on

Biogen Idec (NASDAQ:BIIB)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS.

Over on CAPS, 97 of the 101 members who have rated Electro-Optical -- 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars tenmiles and JPG101, both of whom are ranked in the top 5% of our community.

Just two weeks ago, tenmiles helped Fools scan the situation:

Expect FDA's expedited review to result in approval for MelaFind (non-invasive device) in late 2009, as it has met all primary end points. This is highly speculative, but a device that would allow dermatologists to scan for melanomas could be huge.

In an earlier pitch, JPG101 expands on the company's optimal solution:

A new far superior way of optimising melanoma detection. It is better then dermatologists at finding (true positive) and excluding (true negative) melanoma. Imagine the potential market for this device if on top of the dermatology market they penetrate the [general practitioner] market. Who would want screening 'only' by a dermatologist?

The FDA will probably ok this non invasive device which could potentially save 'the system' a lot of money on top of saving lives. Now the financing and reimbursements will be crucial for widespread acceptance by the medical community.

What do you think about Electro-Optical, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Stryker is a Motley Fool Inside Value selection, Johnson & Johnson is an Income Investor pick, and Google is a Rule Breakers recommendation. The Fool owns shares of Stryker. The Fool's disclosure policy always gets a perfect score.