I have a question about two stocks for all you specializing in investing. Ive been following two stocks lately and i feel that its going to be the next thing that soars. Can anyone give me some insight on these stocks?

STEM- Obviously i have a feeling this is going to hit huge and its still cheap to buy especially since Obama made the speech on stem cell research and everyone saving umbilical cords.

VSCI- Vision Science Inc.- They are specializing in Endoscopes. Hopefully surgery will evolve more into providing minimally invasive access to areas not readily visible to the human eye. Maybe will hit big when the baby boomers need surgery. And the evolution of surgery in general.

Again thanks for the time and help!

 

Of the two stocks, STEM looks like the better from a chart perspective. Both stocks have had more insider sells than buys which is never a good sign. There are other cheap stocks that have actual earnings and insider purchases that I would rather own instead.
Neither chart screams buy-me at this time. VSCI will be facing mounting resistence because all of its Exponential Moving Averages are heading lower which will keep its price in check for the near-term.


I like stocks that have actual earnings, good 15+ return on equity, low PE/growth (peg), good insider ownership, and low or reasonable debt. It also helps to be in the correct industry group at the right time.

For example, I picked up some GE stock last week @ 6.69 and that even pays a 13% dividend. I imagine an old stodgy GE could outperform either of those two stocks on a percentage basis in one year because it has gone down so much and still has real earnings and diversity. Insiders are buying a bunch of the stock which is very promising. A director just bought 30K shares yesterday at 8.07 and GE is currently trading at 8.50 now which means insiders think it's a screaming deal at $8.00. My position is already up 26% in the week that I have owned it.