BOOM! Biotech penny stocks are rockin’ again this week.
Many companies recently announced news and earnings. One even announced it entered into an agreement with a major biotech company. That can be a huge catalyst.
But I still never believe the BS. I want to take advantage of the moves while there are multiple runners. So I’ll never hold and hope…
Chances are none of these companies will cure cancer or any other diseases.
Focus on the pattern, volume, and price action. Trade the ticker, not the company. And swing for singles, especially in this market. That way your small gains can add up over time.
Here are the top biotech penny stocks I’m watching this week and why…
Be hungry for knowledge first before success for even if you make a lot of $ getting lucky or correctly riding one of the crazy trends we’re seeing lately, without knowledge & discipline you’ll probably lose most or even all of it rather quickly as fools and money are soon parted
— Timothy Sykes (@timothysykes) May 18, 2021
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.
- Discover how I find all the stocks on my watchlists here.
How do I find hot stocks? I use StocksToTrade every day. For me, it’s the best tool 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 helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7…
Or try it with the Breaking News Chat for only $17!
Now, let’s get to the top biotech penny stocks to watch this week…
Biotech Penny Stocks #1: Onconova Therapeutics, Inc. (NASDAQ: ONTX)
Onconova Therapeutics, Inc. focuses on developing treatments for cancer. It reported first-quarter financial results on May 17 after hours.
The next day it had a huge gap up and continued higher. On May 18 an analyst initiated coverage on the stock and gave it a price target of $4. I’m watching ONTX for potential continuation to the upside.
Biotech Penny Stocks #2: Seelos Therapeutics, Inc. (NASDAQ: SEEL)
SEEL works to develop treatments for central nervous system disorders. On Monday in premarket, SEEL announced positive data from its open-label study of SLS-002.
“Rapid and clinically meaningful efficacy both as an anti-depressive and anti-suicidal therapeutic after a single dose could make SLS-002 an ideal therapy for this large unmet need of acute suicidality in major depression,” said Raj Mehra, CEO.
Read the full press release here.
Despite the ‘good’ news, the stock gapped down and traded lower throughout the day. The sell-off wasn’t related to the study results at all. It was due to an analyst at Roth Capital downgrading their rating and lowering the price target from $12 to $4.
This is why you never try to predict a stock’s reaction to news. Always watch for a pattern and strategy that works for you before putting your hard-earned money into the market.
I’ll watch SEEL for a panic dip-buy opportunity.
Biotech Penny Stocks #3: Otonomy, Inc. (NASDAQ: OTIC)
This biotech specializes in therapies for ear, nose, and throat ailments.
On May 14 the company announced preclinical data from its proof-of-concept study for its treatment for hearing loss.
“These proof-of-concept results in two independent preclinical models are an important milestone for the program because they validate the therapeutic potential of OTO-825 across a range of hearing loss levels observed in patients and support its advancement into IND enabling activities, which are currently underway.”
Read the full press release here.
The stock has an ugly long-term chart and trades lower volume. It’s on watch for a breakout over $2.50.
Biotech Penny Stocks #4: Oragenics, Inc. (NYSE: OGEN)
In premarket on May 18, OGEN released a letter to shareholders. The letter provided an update on management changes and highlighted the company’s commitment to developing its SARS-CoV-2 vaccine.
The stock had its first green day following the news. I’ll watch to see if it follows the pattern and potentially continues higher.
Biotech Penny Stocks #5: Atossa Therapeutics, Inc. (NASDAQ: ATOS)
ATOS announced its first-quarter financial results on May 14. The stock had a big green day following the news. At the time of this writing, it’s consolidating.
It’s on watch for a multi-day breakout over the $3.40 area.
Biotech Penny Stocks #6: Aerpio Pharmaceuticals, Inc. (NASDAQ: ARPO)
On May 17, ARPO released first-quarter financials and announced it entered into a reverse merger agreement with Aadi Bioscience, Inc.
Read the financial highlights and business update here.
On May 18 the company released data claiming its potential COVID-19 treatment protects against blood vessel dysfunction.
The stock had a big move after earnings and the merger announcement. The stock continued its gains the following day. I’ll watch it for a multi-day breakout over $2.
Biotech Penny Stocks #7: Minerva Neurosciences, Inc. (NASDAQ: NERV)
NERV focuses on developing treatments for central nervous system diseases. It announced positive Phase 3 trial results on May 11. The trial tested the company’s potential treatment of the negative effects of schizophrenia.
“The mean improvement in negative symptoms was 6.8 points in the 32 mg arm and 7.5 points in the 64 mg arm. PSP total score improved by a mean of 12.3 points in the 32 mg arm and 14.5 points in the 64 mg arm, suggesting functional improvement.”
Read the full press release here.
On May 12 the company reported first-quarter financials.
The stock had a huge gap up after the news on May 11. After releasing earnings, the stock had multiple green days in a row.
It could be getting overextended, and volume is fading. I’ll watch this one for a potential morning panic dip buy.
Biotech Penny Stocks #8: Northwest Biotherapeutics, Inc. (OTCQB: NWBO)
NWBO develops potential cancer immunotherapies.
On May 12 the company announced it has requested certification for its new facility so it can begin producing clinical-grade medical products. As part of the announcement, the company also provided an update on the Phase 3 trial for its potential brain cancer treatment.
Read the full press release here.
It’s another stock that’s had multiple green days. I’ll watch it for a dip buy opportunity into a big panic. But it’s not a very volatile stock.
Biotech Penny Stocks #9: Agenus Inc. (NASDAQ: AGEN)
AGEN is another company that develops cancer immunotherapies.
On May 18 it announced a license agreement with Bristol-Myers Squibb Company (NYSE: BMY).
“Bristol Myers Squibb will be granted a global exclusive license to Agenus’ proprietary bispecific antibody program, AGEN1777, that blocks TIGIT and a second undisclosed target. AGEN1777 is an Fc-enhanced antibody in late preclinical development designed to target major inhibitory receptors expressed on T and NK cells to improve anti-tumor activity.”
Read the full press release here.
The stock had a huge gap up following the news. But it faded throughout the day. I’ll watch AGEN for a morning panic dip buy and a potential bounce to the upside. But it’s another stock that’s not very volatile due to its huge float.
Biotech Penny Stocks #10: Stealth BioTherapeutics Corp (NASDAQ: MITO)
Stealth BioTherapeutics focuses on developing therapies to treat mitochondrial dysfunction and diseases like diabetes, Alzheimer’s, and Parkinson’s.
On May 17 the company announced it will receive an additional $30 million in development funding payments during 2021.
“The additional payments were triggered by new positive analyses of clinical data from the ReCLAIM Phase 1 trial, announced on May 5, 2021, which associated baseline mitochondrial viability with improvements in vision for patients with geographic atrophy.”
Read the full press release here.
The company also reported first-quarter financials on May 18. The stock had a huge gap up after earnings but couldn’t hold its gains.
I’m watching MITO to find support and a potential morning spike.
Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
Want to know which stocks I’m watching each week? Subscribe to my no-cost watchlist. I’ll send my top penny stocks to watch right to your inbox every week. It can help you learn the process I follow for every stock.
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!
👉🏼 SUBSCRIBE to my no-cost weekly stock watchlist here.
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.
The post Top Biotech Penny Stocks to Watch — May 19, 2021 appeared first on Timothy Sykes.