“The Comeback Stock of 2010” Mark Skousen

By Travis Johnson, Stock Gumshoe, February 22, 2010

It’s been quite a while since I looked at anything by Mark Skousen, but I had quite a number of queries about this teaser ad last week … and I confess, it piqued my interest a bit, too. So what is his “Comeback Stock of 2010?”

Well, he’d be happy to tell you, of course … assuming you’re interested in a subscription to his Skousen Turnaround Trader newsletter, which will cost you about a thousand smackeroos. But he did provide a meager little supply of snack-size clues, so perhaps we can identify this one on our own, eh?

Here’s how he gets our taste buds tingling:

“This company promises to have one of the most exciting, money-making comeback stories of the year! Here’s your chance to get in on it….”

“Every once in a while, I uncover an amazing opportunity with out-of-this-world short-term profit potential that I’m bursting at the seams to share with my most valued Forecasts & Strategies subscribers. Recently, I ran across such an opportunity.

“As I hope you’ll soon find out, my next HUGE opportunity is a medical device company whose shares are positioned to shoot through the roof! …

“This stock could easily become the Comeback Stock for 2010. In fact, I’m convinced that one of or both of the following things is about to happen:

“This company is about to experience off-the-charts growth, and/or…
“A much larger company (many of which have been watching this medical wonder stock) is about to place their bid to acquire them.

“Either way, early investors win.

“This medical device company is a leader in the development of tools that are designed to make it simpler, and less invasive, to diagnose and treat vascular disease. Because the number of cardiovascular patients is increasing (largely as a result of our aging population, poor diets, and inadequate amounts of rest and exercise), demand for this company’s tools is set to skyrocket.

“It’s products have already been used in over 500,000 cardio procedures worldwide and it’s the “golden child” of this growing industry. In fact, it’s just been granted FDA approval to market a new and improved version of it’s revolutionary device (a device that industry professionals have been tearing at the seams to get their hands on!).

“And adding to the prospect of the company… huge medical companies have already invested millions and more are likely to follow suit!”

Normally this would cause your friendly neighborhood Stock Gumshoe to have to do a bit of flexing and straining, trying to dredge up something useful from a sea of largely empty clues … after all, “vascular disease tools” and “new improved version approved” and “used in over 500,000 procedures” doesn’t exactly one of those nice clue-filled letters where the copywriters do most of my work for me.

But this time, we start out with an extra advantage: We know that there’s a little vascular toolmaker that Skousen has been gaga over for years … and these clues happen to match up with that little company, so instead of hacking through with a machete we get to stroll down a little forest path to find our quarry: Volcano Corporation (VOLC click here for a free trend analysis on VOLC from MarketClub, one of my advertising partners, this one is green arrows all the way at the moment).

Skousen has publicly touted these shares at least a few times — last I saw was in August — and he’s also teased the stock before, I wrote a very brief note about a teaser ad he ran using VOLC almost three years ago, when the company had been public for less than a year and was trading near all-time highs in the low-$20s.

Volcano Corp. is a company that primarily makes intravenous ultrasound machines, and the primary use seems to be in cardiovascular operations (particularly defining and locating problems with blocked arteries, determining where to put stents, etc.). Their market-leading catheter is called the Eagle Eye, and they did just get FDA approval for the “Eagle Eye Platinum” version of the product, which naturally is an upgrade from “gold,” though I can’t say whether anyone’s “tearing at the seams” to get ahold of it. They call themselves a “Therapy guidance and enabling company” … here’s how the company describes itself:

“Volcano Corporation develops, manufactures and commercializes a broad suite of devices designed to facilitate endovascular procedures, enhance the diagnosis of vascular and structural heart disease and guide optimal therapies.

“The Company’s intravascular ultrasound (IVUS) product line includes ultrasound consoles that can be integrated directly into virtually any modern cath lab and single use disposable imaging catheters unique to our system. Our IVUS offerings are used by clinicians to measure the stage and severity of disease present in cardiac and peripheral vessels. IVUS is also used in post-stent placement procedures to confirm adequate expansion