Top Biotech Penny Stocks to Watch

By Timothy Sykes

Last updated on March 23, 2023
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Biotech Penny Stocks to Watch: Key Takeaways

  • Biotechs are one of the hottest sectors year after year…
  • But the potential reward comes with risk — every biotech spiker is a threat to dilute!
  • Don’t hold these stocks, but keep them on watch…

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Biotech stocks have had one of the best runs in recent memory. Now that the industry has cooled down, I’m getting back to basics. That means a return to my favorite pattern — the panic dip buy.

My biotech penny stocks picks are:

  1. Connect Biopharma Holdings Ltd. (NASDAQ: CNTB) — The Biotech Penny Stock Spiker
  2. Ocean Biomedical Inc. (NASDAQ: OCEA) — The Recent SPAC Penny Stock
  3. Ambrx Biopharma Inc. (NYSE: AMAM) — The Biotech Penny Stock Supernova
  4. Statera Biopharma, Inc. (OTCPK: STAB) — The OTC Acquisition News Penny Stock
  5. Full Alliance Group Inc. (OTCPK: FAGI) — The Sub-Penny Holding Company Penny Stock
  6. (OTCPK: FAGI) — Full Alliance Group Inc.  — The Sub-Penny Holding Company Penny Stock

What Are Biotech Penny Stocks?

Biotech penny stocks are stocks in pharmaceutical companies with drugs in development. Recent biotech spikers have come from the following areas:

  • Companies working on COVID-19 vaccines and tests
  • Companies working in pandemic relief and control
  • Firms researching cancer medicines and immuno-oncology drugs
  • Companies developing medicines for rare disorders

These companies are usually desperate for cash from investors. They need it to send their products through multiple phases of testing and stages of trials.

That’s their focus in the markets — to keep stock prices high by selling their progress. When their share prices grow enough, they’ll dilute to cash in, leaving bag holders with big losses…

They’re known to be extremely volatile. One minute they’re flying high on positive headlines — the next they’re down due to bad trial results, side effects on patients, FDA approval issues, or stock dilution.

That’s why I ride the hype but never believe it.

Penny stocks are some of the sketchiest stocks in the market. They suck in newbies with their upside, and these newbies start to believe as share value increases…

There are ways to profit off biotech stocks — as long as you know how the niche works. I learned by making my own mistakes.

I started trading in high school. By the time I graduated college, I had grown my small account from $12,415 to roughly $2 million. I also made some world-class blunders. Read all about it in my best-selling no-cost book, “An American Hedge Fund.”

I’ve now made over $7.4 million in profits. And I teach students how to trade with a small account in my Trading Challenge. I have 31 millionaire students. Find out if you’ve got what it takes to be next…

**Apply for the Trading Challenge Today**

Challenge students get access to all my top tips and trading education resources — including my daily watchlists.

To become a self-sufficient trader, you have to learn how to build your own watchlist. So study up and learn the logic behind my stock picks…

Top Biotech Penny Stocks to Watch

My biotech stock picks for March 2023 are:

  • (NASDAQ: CNTB) —  Connect Biopharma Holdings Ltd.  — The Biotech Penny Stock Spiker
  • (NASDAQ: OCEA) — Ocean Biomedical Inc.  — The Recent SPAC Penny Stock
  • (NYSE: AMAM) — Ambrx Biopharma Inc.  — The Biotech Penny Stock Supernova
  • (OTCPK: STAB) — Statera Biopharma, Inc.  — The OTC Acquisition News Penny Stock
  • (OTCPK: FAGI) — Full Alliance Group Inc.  — The Sub-Penny Holding Company Penny Stock

Disclaimer: this is a watchlist, not a forecast. There’s no guarantee these stocks will offer a trading opportunity or help you hit your trading targets. Keep them on your watchlist, but only trade when you see YOUR best setup.

When there are no truly great trades, use your time to study.

Now, let’s get to the top biotech penny stocks to watch this month.

Biotech Penny Stock #1: Connect Biopharma Holdings Ltd. (NASDAQ: CNTB) — The Biotech Penny Stock Spiker

My first biotech penny stock pick is Connect Biopharma Holdings Ltd. (NASDAQ: CNTB).

On Friday, March 17, this stock had a lazy trading day with minimal volume.

Over the weekend, news broke that the company’s dermatitis drug gave rapid relief to its trial subjects.

And on Monday, March 20, the stock gapped up and spiked 43%.

I’m not necessarily looking for a 40% profit. There’s very little room for error with that strategy. Instead, I keep my expectations in check and plan to take the meat of the move.

If I can make 5-10% off a 40% spike, I have enough room for error to make me feel safe. And the profit margin is still juicy enough to get me out of bed.

I had to cut my trade short on March 20. I ended up gaining only 3%.

That’s pretty good considering it was a ‘failed’ trade.

The pattern didn’t play out as I thought it might, so I got out for a small profit of $250 (starting stake $6,850).

Past spikers can spike again. I’m watching this volatile ticker for future moves.

Biotech Penny Stock #2: Ocean Biomedical Inc. (NASDAQ: OCEA) — The Recent SPAC Penny Stock

My second biotech penny stock pick is Ocean Biomedical Inc. (NASDAQ: OCEA).

For those unaware … a special purpose acquisition company (SPAC) is a shell company that publicly trades on the market.

The whole purpose of a SPAC is to merge with a private company to take them public.

When there’s news of a merger, the resulting volatility can get pretty nuts.

There’s essentially a new company coming to the market. There are a lot of eyes on the stock and a lot of traders looking for profits.

For a little taste of the volatility we’re working with … OCEA spiked more than 700% over two days in February.

As I’m typing this, the daily chart shows three successive bounces … each bottom is higher than the last.

It feels like bullish momentum is building. I’m ready for another spike …

Biotech Penny Stock #3: Ambrx Biopharma Inc. (NYSE: AMAM) — The Biotech Penny Stock Supernova

My third biotech penny stock pick is Ambrx Biopharma Inc. (NYSE: AMAM).

This stock is on a multi-month run …

Technically, the first spike was on December 9, 2022.

The price fell off and consolidated until mid-February 2023, when it shot up again … and pushed right through its December 2022 highs.

It’s been consolidating around the $10 level for weeks.

At this point, it could push higher. Or it could panic and faceplant.

Either way … there will be profit opportunities.

Personally, I’m rooting for a mass panic. One of my favorite patterns to trade depends on over-extended stocks crashing after an insane run.

Here’s a tutorial …

Whether you traded the first spike or not … analyze the chart and learn from this price action.

Biotechs spike like this all the time. If you want to be prepared for the next one, take notes …

Biotech Penny Stock #4: Statera Biopharma, Inc. (OTCPK: STAB) — The OTC Acquisition News Penny Stock

My fourth biotech penny stock pick is Statera Biopharma, Inc. (OTCPK: STAB).

In mid-March, this ticker announced a potential merger with Worksite Labs.

It’s technically not a SPAC play, but the news still added value to the stock. That’s why the price gapped up March 15.

I traded the price action and got out with a small profit of $102 (starting stake $1,620).

Nothing’s set in stone, the merger has yet to happen. And the price sank back down after the announcement.

I think there’s a possibility of another spike. Now is the perfect time to get eyes on it.

But, this is very important … I won’t buy shares in anticipation of a spike.

It’s dangerous to gamble in the stock market. I don’t guess how stocks will react to news or buy shares hoping they’ll spike.

I wait for the ticker to show me volatility and then I plan an entry based on the current price action.

You could still say I’m “guessing the direction.” But it’s an educated guess based on decades of experience with the hottest patterns. And if it falls apart I’ve got a strategy to get out before things turn from bad to worse.

The key to building your account is minimizing risk.

The best way to minimize risk is to only focus on the best setups.

Biotech Penny Stock #5: Full Alliance Group Inc. (OTCPK: FAGI) — The Sub-Penny Holding Company Penny Stock

My fifth biotech penny stock pick is Full Alliance Group Inc. (OTCPK: FAGI).

This is another merger play.

Are you detecting a pattern?

These merger stocks are HOT right now. If you’re looking to add more tickers to your watchlist, keep a look out for more low-priced mergers.

Back to FAGI … Since February 23, I’ve managed to pull in a whopping $3,041 in total profits from this stock (click the link to see my individual trades).

A buy-and-hold approach can’t compare to the power of day trading these volatile tickers.

The price will come down eventually. Take a look at FAGI’s daily chart … These moves are unsustainable.

But if we’re able to recognize that, we can dance around the booby traps to snag the treasure on the other side.

That’s what I’ve been doing for over 20 years.

Get the List of Penny Stocks I’m Watching Delivered to Your Inbox

Want to know the top stocks I’m watching each week? I’ve got a watchlist for that. 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.

Remember: the stocks in my newsletters aren’t automatic buys. You should only listen to your own opinions. Do your own due diligence and research before considering a stock for your trading portfolio.

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How do I find the hottest stocks to trade? I use StocksToTrade every day. It has awesome charts, built-in scanner tools, social media feeds, and a range of other helpful features to help you crunch data and do your research.

Its Breaking News Chat feature is a game-changer — it helped me make over $1 million in trading profits in 2021. I seriously think every trader should have this tool working for them. It’s one of the best trading platforms out there.

Try a StockToTrade 14-day trial for only $7. Or grab it with the Breaking News Chat for only $17!

Biotech Penny Stocks: The Bottom Line

Biotech penny stocks are some of the sketchiest stocks in the market. They can have huge price swings on positive or negative news. But if you’re prepared to take advantage of the volatility, these stocks can offer great trading opportunities…

I teach students how to take advantage of volatile penny stock moves — and all the other things — in my Trading Challenge.

It’s where all my millionaire students refined their approaches. My students get access to all my top trading education resources — my DVDs, thousands of video lessons, and weekly live trading and Q&A webinars.

But I don’t accept everyone for these programs. Here’s something you should know about me…

I only want the most dedicated students. Are you ready for the Challenge? Apply today.

What are your top biotech penny stocks to watch? Let me know in the comments … I love hearing from my readers!

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Comments (1)
Author imageTimothy Sykes
Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my Trading Challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don’t forget to check out my 30 Day Bootcamp, it will teach you everything you need to know about trading.

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