The NEXT company in my ongoing series of the Top 25 Stocks for the NEXT 25 Years is Luna Innovations (NASDAQ: LUNA). This Roanoke, Virginia-based company is most interesting and could be quite explosive in its valuation as the years go by. It is a micro-capitalization company at this point with a valuation of only $48 million, but its prospects are quite large.

Luna Innovations develops and is in the midst of commercializing technology solutions in the molecular technology and sensing instruments. This small company is divided into four divisions: advanced materials, medical devices, sensing and testing and contract research. Although until recently most of Luna's work has come from government contract work, the monetizing of its intellectual property has begun in the private sector. For example, back in mid-May, Luna received US Food and Drug Administration (FDA) approval for a medical device known as EDAC- Emboli Detection and Classification. EDAC is a non-invasive medical device that employs ultrasound technology to detect emboli (blood clots). Currently, Luna is interviewing several larger medical device companies for the distribution rights to EDAC.

Luna also is involved in the optical-fiber world with several analyzer and detection products. Its ultrasonic technology is gaining a foothold in the telecommunications segment, as well. Its contract work with the government is for the Homeland Security Department. Luna's devices employing high-frequency sound waves can help evaluate the physical properties of materials for use in non-industrial testing. The scope and nature of its involvement with government projects is not always fully disclosed.