Penny stock investing doesn't have to be high risk. Instead of
taking gambles on micro cap biotech stocks on the pink sheets,
why not just shoot for cheap but established companies on major
exchanges? These are the hottest penny stocks with the least
downside. You can find some explosive biotech penny stock
investments this way, and easily cut out some of the gambles
other risky investors chase after.
Of course, even with a listing on the NYSE or NASDAQ there is
risk even for the hottest penny stocks. And cheap $1 or $2 stocks
can go to zero just like penny stocks trading for a few cents a
share. The financial crisis proved us that the hard way. But it's
undeniable that by focusing on more liquid penny stocks with a
market cap of over $100 million and a listing on a major
exchange, you can protect yourself better and limit your
risk.
Some good examples of biotech penny stocks that meet these
criteria are
Raptor Pharmaceutical
(NASDAQ:
RPTP
),
PharmAthene
(AMEX:
PIP
),
iBio Inc.
(NYSE:
IBIO
),
AEterna Zentaris Inc.
(NASDAQ:
AEZS
),
Inhibitex
(NASDAQ:
INHX
),
Dynavax Technologies
(NASDAQ:
DVAX
),
Zalicus Inc.
's (NASDAQ:
ZLCS
),
YM BioSciences Inc.
(AMEX:
YMI
) and
Opko Health Inc.
(AMEX:
OPK
). I like all 9 of these biotech penny stocks, and here's
why:
Raptor Pharmaceutical
: Early development-stage company
Raptor Pharmaceutical
(NASDAQ:
RPTP
) has watched its stock value increase +79% in the last 12
months, and +24% in the last six months. RPTP is also trading on
the high end of its 52-week range of $1.41 to $4.04 with aims at
a new high soon. Also, Raptor Pharmaceutical Corp. was recently
rated at "Market Outperform" by JMP Securities in mid-March.
PharmAthene Inc.
: In the last six months,
PharmAthene
(AMEX:
PIP
) has watched its stock price climb +129%, compared to a gain of
+12% for the Dow Jones. This penny stock has the ability to
expand your portfolio in a hurry as it gained +115% in just three
days in October after a favorable development in a recent lawsuit
with fellow biotech
SIGA Technologies
(NASDAQ:
SIGA
). At the time, James Altucher wrote that the stock could go
"from $2 to $20″ on
Seeking Alpha
. While PIP stock is only at around $3.50 now, there is
definitely potential to move even higher.
iBio Inc.
: Specializing in vaccines and therapeutic proteins,
iBio Inc.
(NYSE:
IBIO
) has watched its stock climb +14% over the past two weeks.
Looking in the longer term, IBIO is up an incredible +238% in the
last 12 months as well. IBIO may have a market cap just over $100
million, but it can provide serious bulk to your portfolio. Just
be careful, since this penny stock can move fast both ways.
AEterna Zentaris Inc.
: Next on the list is
AEterna Zentaris Inc.
(NASDAQ:
AEZS
) which has experienced a stock price hike of +108% in the last
12 months. More recently, this drug development penny stock has
watched its stock climb +33% in the last six months as well. A
+4% increase in the last month doesn't hurt either. Just this
week, Aeterna loss smaller than expected due to royalties, a
bullish sign.
Inhibitex Inc.
: Up +109% in the last year and +64% in the last half year,
Inhibitex
(NASDAQ:
INHX
) is involved with the production of anti-infection products.
This biopharmaceutical penny stock is trading very near its
52-week high of $3.10, and is worth a close look for those trying
to purchase penny stocks. Despite missing EPS targets in March,
volume has been high in INHX and shares have rallied almost 30%
in the last month even as the market has softened. Clearly
investors are expecting something big from this stock.
Zalicus Inc.
: Focused on treatment of pain and inflammation,
biopharmaceutical company
Zalicus Inc.
's (NASDAQ:
ZLCS
) stock has increased in value by +61% in the last six months.
Year-to-date, this penny stock is up+30%, compared to a gain of
+4% for the Dow Jones. Zalicus is one of InvestorPlace.com's "
Best Stocks for 2011
," and is the #1 pick out of 10 investments on the list.
Read the full Zalicus recommendation here
.
Dynavax Technologies
: In the last 12 months,
Dynavax Technologies
(NASDAQ:
DVAX
) has seen its stock price climb +103%. More recently, this penny
stock is up +48% in the last six months as well. In its last
income statement, DVAX posted an impressive quarterly revenue
growth of +302%. This penny stock biotech could be a strong
buy.
YM BioSciences Inc.
: Focused on developing treatments for cancer patients,
YM BioSciences Inc.
(AMEX:
YMI
) has jumped +58% in the last six months and +123% in the last
year. The positive trend has continued in 2011 as this penny
stock is up +10%, year-to-date, compared to smaller gains by the
broader markets. Momentum is on this stock's side, and my
quantitative screens favor YM BioSciences.
Opko Health Inc.
: Last on the list of biopharmaceutical penny stocks to buy is
Opko Health Inc.
(AMEX:
OPK
), which has posted a gain of +86% in the last 12 months. More
importantly, OPK posted an astonishing quarterly revenue growth
of +406% in its last income statement. That's impressive growth
from this biotech penny stock.
As of this writing, Louis Navellier did not own a position
in any of the stocks named here.