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Top Biotech Penny Stocks to Watch — June 30, 2021

Institutional buying, Reddit hype, and additions to the Russell indexes  — those are the biggest catalysts for this week’s top biotech penny stocks to watch. 

These sketchy stocks provide good trading opportunities for prepared traders because they run on news and hype.

Just read through chat rooms and Twitter and you’ll find tons of newbies who believe in these companies and the treatments they develop. I’ve learned that that’s a huge mistake…

It cost me $500,000 to learn that when it comes to penny stock companies, you must always expect the worst. (Find out how it all went down in my book — grab your no-cost copy of “An American Hedge Fund” today.)

I don’t want you to learn the hard way. That’s why I became a teacher. I try to save new traders from their own naivety.

Always remember that most penny stocks fail. Especially sketchy developmental companies that need cash to operate. The drugs these companies develop might not even make it to the market.

Keep that in and before you ‘invest.’

And if you want to find news about institutional investments and other catalysts — positive or negative — learn to read SEC filings. (Get my DVD to help you here.) Otherwise, you could miss out on potential catalysts or bad news companies won’t announce in press releases.

And when you know why a stock’s moving, it can add conviction to your trading plans. That’s how you refine and find out what works best for you.

Here are the top biotech penny stocks I’m watching this week 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…

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And its Breaking News Chat add-on feature is a game-changer in this hot market. It helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7…

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Now, let’s get to the top biotech penny stocks to watch this week…

Biotech Penny Stocks #1: Xeris Pharmaceuticals, Inc. (NASDAQ: XERS)

XERS develops ready-to-use injectable medications.

There’s no recent news on the company. But it’s mentioned in Reddit penny stock chat rooms. XERS recently had two green days and a multi-day breakout over $4.40. It made highs of $5, then consolidated. It’s on watch for a breakout over $5.

 

Biotech Penny Stocks #2: Acasti Pharma Inc. (NASDAQ: ACST)

ACST develops drugs to treat cardiovascular diseases. It returns to the watchlist from last week. It held up well and is trading sideways since announcing fiscal year-end results and a business update on June 22.

I’ll watch for a potential breakout over 68 cents. Or if it breaks down, I’ll watch for a morning panic dip-buy opportunity.

 

Biotech Penny Stocks #3: Rigel Pharmaceuticals, Inc. (NASDAQ: RIGL)

RIGL develops potential treatments for cancer and rare immune diseases.

On June 25 the stock had a multi-month breakout over $4.43. The next two days it consolidated and held the breakout level.

And on June 29 the company announced its “novel oral spleen tyrosine kinase (SYK) inhibitor, has been selected for a National Institutes of Health ACTIV-4 trial in hospitalized patients with COVID-19.”

Read the full press release here.

I’ll watch it to potentially break out above $4.62, but I’d like to see more volume.

 

Biotech Penny Stocks #4: Citius Pharmaceuticals, Inc. (NASDAQ: CTXR)

CTXR is a biotech with an antibiotic lock solution in Phase 3 clinical trials. It’s another stock returning to the watchlist from last week. And it’s trending on Reddit’s penny stock page.

Last week it was on watch for a dip-buy opportunity into a big panic after it had its first red day on June 22. The stock looks like it’s ready to break down.

I’ll watch for a dip-buy opportunity into a big panic.

 

Biotech Penny Stocks #5: Adial Pharmaceuticals, Inc. (NASDAQ: ADIL)

ADIL develops potential treatments for addiction disorders.

On June 28 the company announced it joined the Russell Microcap index. It also withdrew its registration statement for the public sale of more shares. That means no dilution.

The stock spiked following the news from roughly $2.25 to $3.10 but it couldn’t hold its gains. It closed at $2.73. The next day it gapped down. I’ll watch it for a potential morning panic dip-buy opportunity.

 

Biotech Penny Stocks #6: Tonix Pharmaceuticals Holding Corp. (NASDAQ: TNXP)

TNXP develops drugs for several human diseases.

The company joined the Russell 2000 and the Russell 3000 indices on June 28. The stock spiked on June 25 and 28 but couldn’t hold its gains on either day, topping out at $1.29.

Volume’s fading so I’ll watch it for a panic dip-buy opportunity.

 

Biotech Penny Stocks #7: Sesen Bio, Inc. (NASDAQ: SESN)

SESN develops potential cancer treatments. It’s another Reddit favorite returning to the watchlist. Chat room traders seem to like this ticker as a long-term hold.

It also had a big move on June 28 due to SEC filings showing institutional buying. Billionaire investor Israel Englander and his Millennium Management fund bought just under nine million shares.

The stock broke out to new 52-week highs on June 29. I’m watching it for potential continued upside.

 

Biotech Penny Stocks #8: Chiasma, Inc. (NASDAQ: CHMA)

CHMA develops oral medications to treat a variety of rare and serious chronic diseases.

On June 24 the company filed a Schedule 13G showing three Rock Springs Capital Management funds bought over three million shares each.

And on June 28 the company announced it submitted a marketing authorization to the European Medicines Agency for its potential treatment for acromegaly.

Company CEO Raj Kannan said, “We are pleased to submit our marketing authorization application to the EMA as planned, as this marks an important step forward in our mission to expand the availability of MYCAPSSA to patients outside the U.S. suffering from acromegaly.”

Read the full press release here.

I’m watching it for a multi-month breakout over $5.

 

Biotech Penny Stocks #9: Lineage Cell Therapeutics, Inc. (NYSE: LCTX)

LCTX is a clinical-stage biotech that develops potential treatments for degenerative diseases.

It’s another company that joined the Russell 3000 index and the Russell Microcap index on June 28.

The stock has been trading sideways near its recent highs for months. I’ll watch for it to potentially break out above $3, then to new 52-week highs over $3.15.

 

Biotech Penny Stocks #10: Osmotica Pharmaceuticals plc (NASDAQ: OSMT)

OSMT develops drugs to treat ADHD, multiple sclerosis, and Parkinson’s disease.

On June 25 the company announced the sale of its portfolio of legacy products and its manufacturing facility. The company will receive $110 million in upfront payments and $60 million in milestone payments.

OSMT CEO Brian Markison said, “The proceeds generated by the sale will be used to retire a substantial portion of our outstanding indebtedness and position us to accelerate the commercialization efforts of our flagship product, UPNEEQ. Since the introduction of UPNEEQ, our confidence in the brand has continued to grow, and we believe that this is the right time to further focus on this tremendous asset.

Read the full press release here.

The stock had a huge gap up following the news. It went from $2.84 to open at $4.80. Then it faded back to the mid $3s. It has been in a downtrend since the news and down a lot. I’ll watch it for a potential bounce to the upside.

 

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penny stock checklist

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. And many top traders who got their start in the Challenge are now chat moderators who answer questions 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 top 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!

Disclaimers

*Please note that these kinds of trading results are not typical and do not reflect the experience of the majority of individuals using our products. From January 1, 2020, to December 31, 2020, typical users of the products and services offered by this website reported earning, on average, an estimated $49.91 in profit. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.

**Tim Sykes has a minority ownership stake in StockstoTrade.com.

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