5. Gentium ( GENT) is an Italian biopharmaceutical company focused on the development and manufacture of drugs for vascular diseases related to cancer and cancer treatment. For full-year 2010, total revenue was $36 million, up from $15.2 million in 2009. Operating income was $6.7 million, compared with a loss of $6.8 million. Net income was $6.1 million, improving from a loss of $6.8 million. Earnings per share were 40 cents, compared with a negative 45 cents per share in 2009. Operating cash flow was $12.2 million, compared with negative cash flows in 2009. The company has cash of $13 million and reduced debt in its books. The stock is trading at 11 times its estimated 2011 earnings and is expected to gain 62% in the next one year.
Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100.