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A Compelling Risk/Reward Situation In Luna Innovations

(Editors' Note: This article covers a stock trading at less than $1 per share and/or has less than a $100 million market cap. Please be aware of the risks associated with these stocks.)

While glancing through my watchlist a few weeks ago, a small obscure company, Luna Innovations (NASDAQ:LUNA), caught my eye with an impressive triple-digit gain. To be honest, I had to go back and look at my notes as to why I even put this company on my screen to begin with. In short, my notes read: Interesting technology, partnership with Intuitive Surgical (NASDAQ:ISRG), good cash position, watch for news.

Well, news came. Naturally, it was the type of news that...

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