BOSTON ( TheStreet) -- This week's Biotech Stock Mailbag opens by noting the passing of Genta, which announced plans to file for Chapter 7 bankruptcy this week after 21 years and $1.3 billion in wasted investor capital. We'll miss you Ray Warrell, you taught a lot of investors -- and a certain journalist -- how to be skeptical of biotech zeroes. Thank you!
A housekeeping note: The Mailbag is taking a two-week August hiatus so I can enjoy some vacation time. The column will return Aug. 24.
Moving on to your emails and tweets:
@WatchStocks tweets: "What's up with $MELA now? Is it dead and going down quick or would you think there's a turnaround soon?"Mela Sciences (MELA) reports second-quarter financial results on Aug. 7, so we'll see if the company can improve upon the lackluster performance of the first quarter when MelaFind revenues totaled just $11,000 (albeit from just a few weeks of marketing.) Cowen & Co. is projecting second-quarter sales of $500,000 while consensus is closer to $600,000. My view remains that MelaFind has no diagnostic utility whatsoever. The device's only value is to provide a new source of quick cash for dermatologists who can sucker patients into shelling out $100 or $200 per scan. My skepticism was reinforced by a story told to me by a hedge fund manager who booked an appointment with a New York dermatologist to get a first-hand look at MelaFind in action.
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