Have you considered adding biotech penny stocks to your watchlist? With so many hot stocks in this insane market, it can be a bit overwhelming. How do you know which stocks to trade?
It’s my honor as a teacher to help you learn to spot the best opportunities. That’s why I’ve put together this list of hot biotech penny stocks to watch.
Biotech stocks are stocks of small developmental companies — some may not even have a product on the market. They’re riding the pandemic hype train that popped up this year.
That’s what this sector runs on…
Pandemic and vaccine news, cancer and diabetes breakthroughs, or even the female version of Viagra (yeah, it’s a thing) can all catch the market’s attention. Then there are new or improved drugs, positive trial results, or even mention of an upcoming announcement.
But don’t buy into the hype. Remember to stay focused on the catalyst, pattern, and your trading strategy.
Let’s get to the top biotech penny stocks list and I’ll show you what’s on my radar and why…
Top Biotech Penny Stocks to Watch
These are the top stocks on my watchlist. ‘Watch’ is the key word here. There’s no guarantee that there’ll be a trading opportunity. Remember, these stocks move FAST.
Before we get to my list of stocks to watch, here are a few of my top resources for penny stocks…
- If you’re new to penny stocks, start here with this FREE online guide.
- Ready to learn how to build your own stock watchlist? This post is for you.
- Find out how I find all the stocks on my watchlists here.
How do I find hot stocks? I use StocksToTrade every day. For me, it has the best tools because I helped design it specifically for trading penny stocks. (I’m also an investor.) It has awesome charts, built-in scans, social media feeds, and so much more to help you do your research.
And its Breaking News Chat add-on feature is a game-changer in this hot market. It’s helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7, or get it with the Breaking News Chat for only $17!
(*Please note: My results are far from typical. Individual results will vary. Most traders lose money. I have the benefit of years of hard work, dedication, and experience. Trading is inherently risky. Do your due diligence and never risk more than you can afford to lose.)
Now, let’s get to the top biotech penny stocks to watch this week…
Regulus Therapeutics Inc. (NASDAQ: RGLS)
RGLS is a clinical-stage biopharmaceutical company. It has two lead products. One is in Phase 2 clinical trials for the treatment of life-threatening kidney disease, Alport syndrome. The other is in Phase 1b clinical trials for autosomal dominant polycystic kidney disease.
On December 4, an insider bought an additional $4.3 million shares, which was disclosed in this SEC filing. Since then, the stock has seen increased volume. It’s hanging around a multi-month breakout area around the $1.20s to $1.40s.
Lexicon Pharmaceuticals, Inc. (NASDAQ: LXRX)
LXRX is a biopharmaceutical company with a number of products in various stages of trials for the treatment of diabetes.
On December 11, it received FDA fast track designation for its treatment of diabetic peripheral neuropathic pain that’s currently in Phase 1 clinical development.
The stock has seen increased volume and price movement. It has a clear multi-day breakout level around $4.
Immutep Limited (NASDAQ: IMMP)
On December 10, IMMP reported positive results from a Phase 2b study of its treatment for metastatic breast cancer.
The stock soared to 52-week highs but sold off through the day and the following two days. I’ll be watching this stock for a potential short squeeze.
Midatech Pharma plc (NASDAQ: MTP)
This stock has a history of spiking, but it rarely holds its gains. It has a relatively low float of 6.3 million shares, but that could change with stock dilution.
If you trade this stock, play it safe. Don’t stay too long — take the meat of the move and move on.
Mind Medicine (MindMed) Inc. (OTCQB: MMEDF)
Mind Med is a psychedelic medicine biotech company. Nope — you can’t make this stuff up…
This company develops psychedelic medicine to improve the health of people with mental health issues and addictions.
On December 14, it announced it had a pre-IND (investigational new drug) meeting with the FDA regarding the use of lysergic acid diethylamide (LSD) as a possible therapy for people suffering from anxiety.
Seelos Therapeutics, Inc. (NASDAQ: SEEL)
On December 14, SEEL announced it received $10 million in proceeds from the private sale of convertible notes to investors, at a price of $1.60 per share. The notes are convertible into common shares after six months of issuance.
That’s about 50 cents higher than the opening price of the stock that morning.
Synlogic, Inc. (NASDAQ: SYBX)
SYBX is a biotech company that focuses on developing synthetic biotic medicines to treat cancer.
On December 14, the company announced its drug for solid tumors and lymphoma was being advanced “due to acceptable safety at doses evaluated to date, intra-tumoral injection feasibility, successful escalation to clinically relevant dose levels, and evidence of target engagement and immune system up-regulation.” That’s from Synlogic’s press release.
BioCardia, Inc. (NASDAQ: BCDA)
BCDA is a clinical-stage biotech company that focuses on therapies for cardiovascular diseases. Its lead cell therapy is for the treatment of heart failure and myocardial ischemia.
On December 14, it announced it’s waiting for feedback from the data safety monitoring board regarding its interim data from a Phase 3 trial. The company says it will make an announcement before the market opens on December 17 about the feedback they receive.
SELLAS Life Sciences Group, Inc. (NASDAQ: SLS)
On December 11, SLS was running after releasing positive results from a randomized Phase 2 trial of women with ductal carcinoma in situ of the breast. Then, as can happen with these sketchy companies lately, the stock ran from the $5s to almost $20 per share before the press release even came out…
Then, on December 14, the company was quick to take advantage of its higher price point. It announced a direct offering of 2,320,000 shares at a price of $7. Its current price in the $6s isn’t technically in penny stock range, but remember that these stocks can fall just as fast as they can soar.
vTv Therapeutics Inc. (NASDAQ: VTVT)
On December 11, VTVT was spiking after it announced that its parent company purchased 625,000 shares of the company at $1.60.
I go over catalysts in my “How to Make Millions” DVD. It’s 35 hours of educational content and all proceeds from the sale go to charity.
Never trade stocks solely on news releases. You have to consider multiple indicators before you buy a stock. I go over seven in my Sykes Sliding Scale — learn more about them in my “Trader Checklist Part Deux” DVD.
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I’ll say it again … The stocks on my watchlist aren’t an automatic buy. Remember to do your own due diligence and research. If you’re trading without a trading plan, you’re gambling. Don’t be a degenerate gambler — trade smart!
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Conclusion
Biotech penny stocks are stocks of small, developmental companies. These companies are usually desperate for cash. They need it to continue developing products and for testing and trials. Trade them with caution…
They’re known to be extremely volatile. They can have huge price swings. One minute they’re flying high on positive news — the next they’re down due to bad trial results, side effects, or stock dilution.
If you’re prepared to take advantage of the price swings, these stocks can offer great trading opportunities…
In my Trading Challenge chat room, my students and I talk about the hottest penny stocks. Most of my top students are moderators in the chat. They’re there to answer questions, share their opinions, and help out new students
If you want to join a community of top traders, apply for my Trading Challenge. I don’t accept everyone. I only want the most dedicated students who are willing to put in the time and effort it takes to become my next millionaire student. Could it be you?
What do you think of these biotech penny stocks to watch? Let me know in the comments … I love to hear from you!
The post Top Biotech Penny Stocks to Watch — December 16, 2020 appeared first on Timothy Sykes.