Credit: Shutterstock photoSome of the hottest penny stocks to buy now are in the biotech sector. Start-ups and early phase biotechnology companies can provide explosive profit potential for investors who are in on the ground floor of a game-changing medical technology or blockbuster drug.
That said, finding hot penny stocks in the biotech sector is no easy task. There are lots of micro-caps and pink sheet stocks out there that wreak havoc on the portfolios of penny stock investors. But buying penny stocks doesn't have to be an all-out gamble - by screening for investments with a decent market cap ($100 million or more) and listing on a major exchange, you can find ultra cheap stocks that are very fast movers but considerably less risk.
Here are my favorite four biotech penny stocks to buy now:
YM BioSciences Inc: The first stock on the list is biopharmaceutical company YM BioSciences Inc. (AMEX: YMI ), which develops products for the treatment of cancer. In the last 12 months, YMI stock has gained +63%. More recently, YMI is up +8% year-to-date and is trading near its 52-week high of $2.52.
Dynavax Technologies: Known for discovering and developing products for the prevention and treatment of infectious diseases, asthma and autoimmune diseases, Dynavax Technologies (NASDAQ: DVAX ) has gained +36% in the last six months. Going further back, this penny stock has shown impressive gains of +84% in the last year.
Zalicus Inc: Since the start of 2011, Zalicus Inc. (NASDAQ: ZLCS) has watched its stock value rise +44%, compared to much smaller gains by the broader markets. This biopharmaceutical company, which focuses on the treatment of pain and inflammation, has experienced stock growth of +70% since last April. Buy this stock with a 52-week range of $1.01 to $2.72. Zalicus is one of InvestorPlace.com's 10 Best Stocks for 2011 .
AEterna Zentaris Inc: Drug development company AEterna Zentaris Inc. (NASDAQ: AEZS ) specializes in oncology and endocrine therapy. Since the start of 2011, this penny stock has raised its stock value of +8%. Investors are even more thrilled to see 52-week growth of +87%.
As of this writing, Louis Navellier did not own a position in any of the stocks named here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
