Biotech Penny Stocks to Watch: Key Takeaways
- Monkeypox had a good run — now my biotech penny stock watchlist has diversified!
- I’m trading safe, preparing for a market crash …
- I’m watching for panic bounces on all of my watchlist picks …
Biotech stocks have had one of the best runs in recent memory. Now that the sector is down even more than the overall market, I’m getting back to basics. That means a return to my favorite pattern — the panic dip buy.
- Happiness Development Group Limited (NASDAQ: HAPP … Read my analysis here.)
- HeartBeam, Inc. (NASDAQ: BEAT … Read my analysis here.)
- Inventiva (NASDAQ: IVA … Read my analysis here.)
- Golden Developing Solutions Inc. (OTCPK: DVLP … Read my analysis here.)
- ProText Mobility, Inc. (OTCPK: TXTM … Read my analysis here.)
Table of Contents
- 1 What Are Biotech Penny Stocks?
- 2 Top Biotech Penny Stocks to Watch
- 2.1 Biotech Penny Stock #1: Happiness Development Group Limited (NASDAQ: HAPP)
- 2.2 Biotech Penny Stock #2: HeartBeam, Inc. (NASDAQ: BEAT)
- 2.3 Biotech Penny Stock #3: Inventiva (NASDAQ: IVA)
- 2.4 Biotech Penny Stock #4: Golden Developing Solutions Inc. (OTCPK: DVLP)
- 2.5 Biotech Penny Stock #5: ProText Mobility, Inc. (OTCPK: TXTM)
- 3 Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
- 4 Biotech Penny Stocks: The Bottom Line
What Are Biotech Penny Stocks?
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…
That’s why I ride the hype but never believe it.
Penny stocks are some of the sketchiest stocks in the market. But I know how this niche works. I’ve been trading penny stocks for 20+ years…
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. Read all about it in my best-selling no-cost book, “An American Hedge Fund.”
I’ve now made over $7.3 million in profits. And I teach students how to trade with a small account in my Trading Challenge. I have 20+ millionaire students. Find out if you’ve got what it takes to be next…
Students get access to all my top trading education resources — including daily watchlists. But successful traders learn how to build their own. So study up and learn the reasons behind my stock picks…
Top Biotech Penny Stocks to Watch
This is a watchlist only. There’s no guarantee these stocks will offer a trading opportunity. 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.
- New to penny stocks? Start with my FREE online guide here.
- Learn how to build your own stock watchlist here.
- Brush up on your pattern knowledge here.
Now, let’s get to the top biotech penny stocks to watch this month.
Biotech Penny Stock #1: Happiness Development Group Limited (NASDAQ: HAPP)
Reverse splits were a hot theme in the market for a while…
This Chinese nutraceutical and dietary supplement company went from a 67 million share float to 3.34 million overnight. This triggered some wild volatility.
It averages around 300,000 shares traded in the past 60 days. The 3 days surrounding the reverse split infused the suddenly tiny float with 4 million shares traded.
This stock has nothing to recommend it besides for volatility. In fact, the reverse split helped avoid a delisting from the Nasdaq — HAPP traded below $1 for almost a year.
- Besides for pharmaceuticals, HAPP is also in the e-commerce and EV sectors. Yup, it’s a sketchy penny stock
- It spiked 60% after the reverse split. After a quiet Day 2, it spiked 85% on Day 3!
I’m watching this stock for the inevitable panic bounce.
Biotech Penny Stock #2: HeartBeam, Inc. (NASDAQ: BEAT)
I’ve been tracking this stock since mid-September. That’s when it announced a patent on an advanced electrocardiogram (ECG) patch that can detect cardiac arrhythmia and heart attacks.
According to their press release, this is better than the existing technology out there. In fact, it might have a “disruptive effect” on the ECG patch market, estimated by the press release to reach $4.8 billion by 2030.
I don’t care about any of that. I only care about the 115 million shares that BEAT traded that day. It also spiked by 75%.
Even more impressive — it racked up 400% in gains from September 15 to October 6!
It’s down 38% from that point. But with a 6.43 million float, its chart can bounce as much as its ECG readouts.
- BEAT had a wild September into October, with 6 spikes of 50% or more
- These spikes came on smaller catalysts, or chat pumps
This is another potential dip buy into an intraday panic. No chasing or being too aggressive in this market environment.
Biotech Penny Stock #3: Inventiva (NASDAQ: IVA)
Akero Therapeutics, Inc. (NASDAQ: AKRO) was one of the best biotech stories of the past month. It gained more than 200% off a month-long run starting on September 13. That’s pretty impressive for a stock with a market cap in the billions.
The catalyst for that run? News about drug trials for non-alcoholic steatohepatitis (NASH), an untreatable disease that has recently become the leading cause of liver failure. The obesity epidemic has driven NASH numbers higher worldwide.
By 2028, it’s estimated that the market for NASH treatments will reach $180 billion.
Not into trading $40 stocks? IVA is a NASH penny stock that’s been moving as well.
Unlike AKRO, IVA’s big move came with no news. It’s been getting plenty of Twitter mentions …
- IVA’s NASH drug, lanifibranor, is in clinical trials. IVA claims that its development delays are somehow connected with the Russia-Ukraine war
- IVA can make $290 million from their China distribution deal. Peak revenues of lanifibranor are estimated at $1.7 billion in 2034
It’s holding onto its October 7 gains. In this market environment, I’m always watching for panics.
Biotech Penny Stock #4: Golden Developing Solutions Inc. (OTCPK: DVLP)
According to this October 10 press release: “There will be further updates on additional acquisitions next week. The pipeline of deal flow is rich. Stay tuned.”
Both the first and second reports left the acquisitions unnamed … paving the way for more press releases.
They’ve also bought themselves some wiggle room, in case they don’t follow through with the acquisitions like the last time. The official explanation for that last switch-up? They hadn’t done their due diligence prior to the announcement!
I don’t care. This is a crappy stock with only one redeeming feature — they know how to play the game.
It added to its gains for the next three days. On Day 4 it spiked again.
In all, the week’s gains have added about 125% to its share price at the time of writing.
- DVLP is a “health and wellness” company in the CBD segment. They used to be in the solar energy business. What business are they really in? The penny stock pumping business
- Shares are up near 52-week-highs. What happened the last time it rose that high? It crashed back down
Biotech Penny Stock #5: ProText Mobility, Inc. (OTCPK: TXTM)
Sooner or later, DVLP will fail. Don’t worry — I’ve got another crappy OTC stock for you.
Good job $TXTM promoters keep it going, and all you other promoters on $LTNC $HMBL $ENZC $CYDY $RMSL $SYSX should be taking notes on what they're doing well. I'm truly grateful to you all https://t.co/zQDFBgD6s1 but we really need you guys to come through, make OTCs great again!
- TXTM’s boosters won’t let you forget the five-day run that TXTM had in June — sending its share value up by more than 900%. Of course, it took just two days for the stock to lose most of its gains
- I locked in a textbook dip buy back then. That’s the only trade I’d consider making with this stock
Get the List of Penny Stocks I’m Watching Delivered to Your Inbox
Want to know the top stocks I’m watching each week? Subscribe to my no-cost watchlist. 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.
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!
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…
It’s where all my millionaire students refined their strategies. Students get access to all my top trading education resources — my DVDs, thousands of video lessons, and weekly live trading and Q&A webinars.
What are your top biotech penny stocks to watch? Let me know in the comments … I love to hear from you!