Top Biotech Penny Stocks to Watch — May 26, 2021

Lots of big news in biotech penny stocks this week…

If you follow my daily watchlist you know there’s a big conference coming up. The American Society of Clinical Oncology (ASCO) annual meeting kicks off on June 4. And companies are busy pumping out press releases in advance.

That could create some ‘buy the rumor, sell the news’ plays.

So don’t wait for the conference to start and expect big moves in these stocks. By then, any positive news could already be priced in.

That’s why smart traders prepare in advance. Build your watchlist and plan your trades.

Be ready to capitalize on the news and hype. Just never believe it.

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

Biotech Penny Stocks #1: Verastem, Inc. (NASDAQ: VSTM)

VSTM develops medicines for cancer patients. On May 24 it announced the FDA granted its ovarian cancer therapy breakthrough therapy designation.

Read the full press release here.

After the news, the stock had a huge green day on high volume. The stock’s a former runner, so I’ll watch it for more potential upside.

 

Biotech Penny Stocks #2: Jaguar Health, Inc. (NASDAQ: JAGX)

Jaguar Health, Inc. develops medicines for patients suffering from gastrointestinal disorders.

The most recent news on the company is from May 20. That’s when it announced that doctors will present three abstracts of the company’s data at the upcoming American Society of Clinical Oncology (ASCO) annual meeting.

On May 24, JAGX traded higher than average volume. It’s also a former runner but it has a lot of overhead resistance. I’ll watch it for more upside but swing for singles with any potential trades.

 

Biotech Penny Stocks #3: Aptorum Group Limited (NASDAQ: APM)

APM develops therapies to treat infectious diseases and cancer. On May 24 it announced positive results from its Phase 1 clinical trial.

Following the news, the stock had a gap up and morning spike on high volume. But it faded in the afternoon.

It’s a low float stock with roughly eight million shares. I’ll watch it for a potential short squeeze if it can get above the $2.80s.

 

Biotech Penny Stocks #4: Creative Medical Technology Holdings, Inc. (OTCPK: CELZ)

Creative Medical Technology Holdings, Inc. develops treatments for multiple ailments using stem cells.

On May 24 the company announced “positive preclinical data supporting extension of ImmCelz® applicability to Parkinson’s Disease.

“Using the well established MPTP mouse model of the disease, it was demonstrated that administration of ImmCelz® inhibited onset of Parkinsonism-like behavior and resulted in protection of dopaminergic cells.”

Read the full press release here.

It’s a former supernova and a multi-day runner. I’m watching it for a potential dip buy into any big intraday panic.

 

Biotech Penny Stocks #5: Atossa Therapeutics, Inc. (NASDAQ: ATOS)

ATOS develops medicines for the areas of oncology and infectious diseases.

On May 21 it announced that the company CEO, Dr. Steven C. Quay, was asked to present his research work on COVID-19 to U.S. Congress members. The virtual meeting was held on May 24.

The stock was on my watchlist last week for a multi-day breakout over the $3.40 area. The stock is consolidating and I’m still watching for the potential breakout.

 

Biotech Penny Stocks #6: Vascular Biogenics Ltd. (NASDAQ: VBLT)

VBLT is another biotech company that focuses on developing cancer treatments.

On May 20 it announced “a poster providing an update on the OVAL Phase 3 registration enabling clinical trial of VB-111 in ovarian cancer will be presented at the American Society of Clinical Oncology (ASCO) Annual Meeting.”

Read the full press release here.

I’m watching VBLT for a multi-day breakout over the $2.40 area. Ideally, I want to see more volume.

 

Biotech Penny Stocks #7: Sunshine Biopharma, Inc. (OTCPK: SBFM)

OK, I’m cheating here a bit. SBFM is technically a drug manufacturing company. But it’s still in the healthcare sector. And it’s a good example of how these stocks have the potential to move on drug news.

SBFM develops anti-cancer drugs for a variety of cancers. The stock had a big move on May 25. That’s when it announced its anti-cancer drug has the potential to evade P-glycoprotein, the major cause of drug resistance and inhibit topoisomerase II. (Topoisomerase II is the enzyme cancer cells use to multiply.)

Read the full press release here.

StocksToTrade Breaking News Chat alerted the news in premarket.**

The stock gapped up and had a morning spike. I bought it when it broke above its morning high.

I got a partial fill and got 97,700 shares at $0.158. I sold when it looked toppy at $0.172 and I made $1,368 on the trade.* I underestimated it and sold too soon like usual. The stock made a high of $0.2129.

It’s a former multi-day runner. I’ll watch for it to potentially continue higher and also for any dip buy opportunities into any big panics.

 

Biotech Penny Stocks #8: Eyenovia, Inc. (NASDAQ: EYEN)

EYEN focuses on developing therapies for diseases in and around the eye.

On May 25 it announced positive top-line data from its Phase 3 clinical trials testing its potential treatment for age-related eye strain and vision loss.

Read the full press release here.

EYEN gapped up following the news. It spiked up to $6.81 in premarket. After the market opened, the stock faded throughout the day. I’ll watch this one for dip buys into big panics.

 

Biotech Penny Stocks #9: Pieris Pharmaceuticals, Inc. (NASDAQ: PIRS)

PIRS develops potential treatments for asthma, inflammatory, and immuno-oncology diseases.

On May 25 the company announced a collaboration with another company “to discover, develop and commercialize locally delivered respiratory and ophthalmology therapies that leverage Pieris’ proprietary Anticalin® technology.”

PIRS will receive $20 million upfront and the potential for up to $1.4 billion in royalty and milestone payments.

Read the full press release here.

Company management will also participate in a fireside chat at the upcoming Jefferies 2021 Virtual Healthcare Conference on June 4 at 1 p.m. Eastern.

The stock traded record high volume of 325 million shares following the news of the collaboration agreement. I’ll watch the stock to potentially continue higher. It’s choppy so I won’t chase. I’ll watch for dip-buying opportunities.

 

Biotech Penny Stocks #10: Sesen Bio, Inc. (NASDAQ: SESN)

SESN develops protein therapies for cancer patients.

The stock is getting pumped on Twitter as a billionaire play. A recent report says billionaire Israel “Izzy” Englander’s firm added to its position in the company in the first quarter.

The stock is close to a potential multi-day breakout level around $3.10. I’ll watch for a breakout and a retest of the recent highs around $3.50.

 

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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. 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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