Has summer trading hit biotech penny stocks?
While we saw some crazy spikers in both OTCs and listed stocks in the past weeks, this week’s a little quieter…
But it’s normal for the market to slow down in the summer. Traders go on vacation, and this year people are eager to get out and travel as more states and countries open up.
That’s why adapting to the market is crucial. You don’t have to trade every day.
Slow market days are a perfect opportunity to study and grow your knowledge account. Prepare now for when volume and spikers come back. You never know when the market will shift and you’ll have to adapt again.
Stop wasting your time and money trading sub-par setups. That just leads to frustration and unnecessary losses. And being in the wrong trade can cost you an opportunity when a better trade presents itself.
And today’s watchlist has a great lesson for traders who hold and hope. Find out what happens when bad news hits one of these sketchy biotechs…
Here are the top biotech penny stocks I’m watching this week and why…
Nobody is ever “weak” for taking profits into strength, that’s actually how you can make millions within a few years. And if any investment is destined to “go to the moon” you can easily buy back in along the way without having to risk disastrous losses that too many people have!
— Timothy Sykes (@timothysykes) July 19, 2021
Table of Contents
- 1 Top Biotech Penny Stocks to Watch
- 1.1 Biotech Penny Stocks #1: CytoDyn Inc. (OTCQB: CYDY)
- 1.2 Biotech Penny Stocks #2: NeuroBo Pharmaceuticals, Inc. (NASDAQ: NRBO)
- 1.3 Biotech Penny Stocks #3: Sesen Bio, Inc. (NASDAQ: SESN)
- 1.4 Biotech Penny Stocks #4: Jaguar Health, Inc. (NASDAQ: JAGX)
- 1.5 Biotech Penny Stocks #5: Ardelyx, Inc. (NASDAQ: ARDX)
- 1.6 Biotech Penny Stocks #6: Creative Medical Technology Holdings, Inc. (OTCPK: CELZ)
- 1.7 Biotech Penny Stocks #7: Xeris Pharmaceuticals, Inc. (NASDAQ: XERS)
- 1.8 Biotech Penny Stocks #8: Calithera Biosciences, Inc. (NASDAQ: CALA)
- 1.9 Biotech Penny Stocks #9: NovaBay Pharmaceuticals, Inc. (AMEX: NBY)
- 1.10 Biotech Penny Stocks #10: ZIVO Bioscience, Inc. (NASDAQ: ZIVO)
- 2 Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
- 3 Conclusion
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…
- If you’re new to penny stocks, start here with this FREE online guide.
- Ready to learn how to build your own stock watchlist? This post is for you.
- Discover how I find all the stocks on my watchlists here.
How do I find hot stocks? I use StocksToTrade every day. For me, it’s the best tool because I helped design it specifically for trading penny stocks. (I’m also an investor.) It has awesome charts, built-in scans, social media feeds, and so much more to help you do your research.
Now, let’s get to the top biotech penny stocks to watch this week…
Biotech Penny Stocks #1: CytoDyn Inc. (OTCQB: CYDY)
CYDY is a biotech that develops therapeutic antibodies.
On July 19 the company announced management will host a webcast on July 22 at 4 p.m Eastern to discuss its cancer and COVID-19 trials.
The stock had its first green day after the announcement. The next day it gapped up and continued higher. It’s also a former runner. I’ll watch for dip-buy opportunities into any big panics and a reaction to the webcast discussion.
Biotech Penny Stocks #2: NeuroBo Pharmaceuticals, Inc. (NASDAQ: NRBO)
NRBO develops therapies for COVID-19, diabetic neuropathy, and neurodegenerative diseases.
The most recent news is from July 12 when the company announced shareholders elected two new board members.
In after-hours on July 19, the stock spiked with no news. The next day it gapped up and climbed up 80% on high volume. It’s a low float stock with fewer than seven million shares. It could be the target of a short squeeze. I’ll watch for a potential morning panic dip-buy opportunity.
Biotech Penny Stocks #3: Sesen Bio, Inc. (NASDAQ: SESN)
SESN develops targeted fusion protein therapies to treat cancer patients.
On July 20 the company announced, “The first patient has been enrolled in China in the clinical trial to assess the efficacy and safety of Vicineum in patients with BCG-unresponsive non-muscle invasive bladder cancer (NMIBC).
“The milestone comes only four months after the Investigational New Drug (IND) application for Vicineum was approved by the Center for Drug Evaluation (CDE) of the China National Medical Products Administration (NMPA), which triggered a $3M milestone payment from Qilu Pharmaceutical, the first of $23M in potential milestone payments to Sesen Bio.”
The stock didn’t have much of a reaction to the news. That could be because of dilution.
This is another stock I’ll watch for potential panic dip-buy opportunities.
Biotech Penny Stocks #4: Jaguar Health, Inc. (NASDAQ: JAGX)
JAGX develops drugs to treat gastrointestinal disorders.
The stock’s a former runner, going from under $1 to a high of $4.50 in January. But it’s been in a downtrend since.
On July 19 the company and its subsidiary announced the close of the Dragon SPAC financing. JAGX’s subsidiary, Napo EU, will merge with the SPAC in approximately 80 days.
The stock had two green days following the news. I’d like to see more volume come in for the stock to have a big move. It likely has a ton of bag holders from its run earlier in the year.
Biotech Penny Stocks #5: Ardelyx, Inc. (NASDAQ: ARDX)
Since this is a watchlist and not a buy list, I have to mention ARDX. The company develops potential drug treatments for kidney and cardiorenal diseases.
In after-hours on July 19, the company announced the FDA responded to its new drug application for the control of serum phosphorus in adult patients with chronic kidney disease on dialysis.
The press release notes, “the FDA has identified deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time.” And, “while the FDA has not provided specific details regarding the deficiencies, the FDA noted that a key issue is the size of the treatment effect and its clinical relevance.”
The stock plunged 75% by the next morning. This is a great example of what can happen if you hold these sketchy biotechs long term. Bad news can hit your account hard.
Biotech Penny Stocks #6: Creative Medical Technology Holdings, Inc. (OTCPK: CELZ)
CELZ develops stem cell treatments for various disorders.
It returns to the watchlist from last week since it continues to be a favorite among traders on the Reddit penny stock page.
But the company also released news on July 20 — it launched its second regenerative immunology product, MyeloCelz™.
Biotech Penny Stocks #7: Xeris Pharmaceuticals, Inc. (NASDAQ: XERS)
XERS develops ready-to-use injectable drugs.
The company announced it entered an exclusive rights agreement for commercializing its treatment for severe hypoglycemia in patients with diabetes mellitus on July 19.
Biotech Penny Stocks #8: Calithera Biosciences, Inc. (NASDAQ: CALA)
CALA develops small molecule drugs to treat cancer tumors.
I’ll watch this one for a news catalyst, high volume, and one of my patterns.
Biotech Penny Stocks #9: NovaBay Pharmaceuticals, Inc. (AMEX: NBY)
NBY develops eye and wound care products and offers KN95 masks.
Mask stocks ran in 2020. And with the new COVID-19 variant making the news, we could see these stocks run again.
On July 19, the company announced a partnership to commercialize its prescription eye care treatment, Avenova.
The stock had a green day after the news but then consolidated. Again, I’ll watch for more volume to come in and a potential breakout over 71 cents.
Biotech Penny Stocks #10: ZIVO Bioscience, Inc. (NASDAQ: ZIVO)
ZIVO sells natural bioactive ingredients from algae cultures to supplement and medical food manufacturers.
The stock’s trading near its 52-week lows and it trades low volume. It’s another one I’ll watch for more volume to come in before I plan a trade.
Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
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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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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!
*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. 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.