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. source investorplace.com... For the latest updates PRESS CTR + D or visit Stock Market news Today
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