Top Biotech Penny Stocks to Watch — May 5, 2021

Biotech penny stock action has lit up.

I said last week that big runs in higher-priced biotechs could lead to more action in penny stocks. It looks like that’s what we’re seeing now. This week, anyway…

You never know how long a hot sector will last. It could be a week or maybe months.

So be ready to take advantage of the opportunities while they’re here. But also be ready to adapt.

Some of these stocks had massive moves despite an overall ugly market.

Always remember to think of the big picture.

Trade safe and be ready to protect, protect, protect. Want to see how you can learn from even more of my watchlists? Subscribe to Profit.ly. You have SO many opportunities to study and refine your process. Take advantage of it all.

Now, here’s the top biotech penny stocks list … I’ll show you what’s on my radar and why.

"Sell in May and go away" seems appropriate so far due to how much the markets have run & now inflation fears, remember to protect, protect, protect $SPY $QQQ $DIA and congrats to $BPSR and #dogecoin longs, such nice spikers in such an ugly market!

— Timothy Sykes (@timothysykes) May 4, 2021

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.

And its Breaking News Chat add-on feature is a game-changer in this hot market. It helped me make record profits in 2020.* Get a StockToTrade 14-day trial for only $7…

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Now, let’s get to the top biotech penny stocks to watch this week…

Biotech Penny Stocks #1: Plus Therapeutics, Inc. (NASDAQ: PSTV)

Yesterday in premarket, PSTV announced the signing of two collaboration agreements for drug manufacturing and testing.

Marc H. Hedrick, president and CEO, said, “We have identified two best-in-class partners in Invicro and Eurofins to help us get one step further in bringing RNL to a registrational clinical trial and ultimately commercial supply.”

Read the full press release here.

On April 30, the company filed a Form 4 showing the president and CEO purchased 2,183 shares at $2.2767.

The stock had a big gap up and spike before fading. I’ll watch it for dip buy opportunities and potential bounces.

Biotech Penny Stocks #2: Verastem, Inc. (NASDAQ: VSTM)

VSTM is a developmental stage company working on therapies for cancer patients. It was on my watchlist last week for a breakout over $3.09. It broke out, but I wanted to see more volume. (Past performance is not indicative of future results.)

Yesterday it broke down below the breakout level. I’ll watch it for a dip buy opportunity into a big panic.

Biotech Penny Stocks #3: ADiTx Therapeutics, Inc. (NASDAQ: ADTX)

On Monday, ADTX announced its plans to “build a state-of-the-art high capacity AditxtScore™ immune monitoring center.”

Read the Form 8-K and press release here.

The stock gapped up and had a green day following the news. But yesterday it gapped down and was red. I’ll watch for another press release to bring in more volume. I’d like to see it bounce to the upside and get over Monday’s high of $3.20.

Biotech Penny Stocks #4: Tetra Bio-Pharma Inc. (OTCQB: TBPMF)

TBPMF is a developmental stage biotech company. It was on my watchlist last week after it went on a tear for five days. I was watching it for a dip buy opportunity into a big panic. But it kept going higher.

Yesterday it had a big red day. It’s still on watch for a big panic and dip-buy opportunity.

Biotech Penny Stocks #5: Cocrystal Pharma, Inc. (NASDAQ: COCP)

On Monday COCP provided an update on the development of its potential treatment for coronaviruses and COVID-19.

COCP president Sam Lee said, “We believe that, due to their novel mechanism of action, our protease inhibitors are likely to be effective against new variants of SARS-CoV-2.

“This may include the recent variants first identified in the United Kingdom, South Africa, Brazil and India, which may be more contagious forms of the virus and may evade immunity produced by vaccines or previous infection.”

Read the full press release here.

The stock didn’t react to the news until yesterday. It had a huge gap up and was up over 160% just after 12 p.m. It broke out over resistance on the daily chart around $3 but it faded in the afternoon. I’ll watch for a dip buy opportunity into a big panic.

Biotech Penny Stocks #6: Sesen Bio, Inc. (NASDAQ: SESN)

SESN is another stock returning to the watchlist from last week. I noted it was uptrending, and it was on watch for a news catalyst to push it over $3. It had a small breakout but it wasn’t convincing.

But yesterday the company released news…

It announced “the expansion of its leadership team with the appointment of experienced commercial industry leader, Lisa LaMond, as Vice President, Sales and Corporate Systems. The Company also announced its engagement of leading contract sales organization (CSO), Syneos Health, for field sales support and execution in the US for Vicineum.”

Read the full press release here.

The stock could have a delayed reaction to the press release like we saw with COCP. I’m still watching for a breakout over $3.

Biotech Penny Stocks #7: Catalyst Pharmaceuticals, Inc. (NASDAQ: CPRX)

CPRX is a biotech company that focuses on developing therapies for patients with chronic neuromuscular and neurological diseases.

The company will release its first-quarter 2021 earnings in after-hours on May 10. And it will host a conference call on May 11 to provide a corporate update.

The stock is holding near its recent highs between $4.50 and $5. I’ll watch for it to react to earnings before planning a trade. It isn’t a very volatile stock, so swing for singles if you trade this one.

Biotech Penny Stocks #8: BioVaxys Technology Corp. (OTCPK: BVAXF)

BioVaxys Technology Corp. develops vaccine platforms to fight cancer and viruses.

On Monday the company announced it signed a definitive agreement to “begin the clinical-grade bioproduction and aseptic packaging for BXV-0918A, BioVaxys’ vaccine candidate for Stage III/Stage IV ovarian cancer.”

Read the full press release here.

The stock has moved up the last two days following the news. But it trades very low volume. I’ll watch for more volume to come in before planning a trade.

Biotech Penny Stocks #9: Organicell Regenerative Medicine, Inc. (OTCPK: BPSR)

BPSR is a huge recent runner. I traded it multiple times on the way up last week. (See all my BPSR trades here.*) Since then, it’s had two big red days. Yesterday I traded it on the bounce…

The company announced it’s “exploring options to up-list its common stock to the NASDAQ Capital Market tier of the NASDAQ Stock Market, LLC.”

Read the full press release here.

I bought it when it gapped up on the news. I got 75,600 shares at $0.315. I got a beautiful morning spike and sold at $0.372 for a profit of $4,309.* And I even underestimated it.

I tried to rebuy a dip but cut losses quickly when there was no bounce. I kept my losses small compared to my gains, losing $585.

I’ll keep watching BPSR for dip-buying opportunities.

Biotech Penny Stocks #10: Mind Medicine (MindMed) Inc. (NASDAQ: MNMD)

MNMD is another biotech stock returning to the watchlist from last week. It’s developing psychedelics as a treatment for depression, mental illness, and addiction.

The stock had a nice run last week when it announced it was uplisting to the Nasdaq. Once it was listed it became a ‘buy the rumor, sell the news’ play. It has been downtrending since. Until yesterday…

It looks like the stock found support around $3 and it bounced to almost $4. The stock’s still trading high volume so I’ll keep watching it for a dip buy opportunity or a morning spike with a news catalyst.

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

Want to know which 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.

penny stock checklist

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!

👉🏼 SUBSCRIBE to my no-cost weekly stock watchlist here.

Conclusion

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!

Disclaimers

*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. This figure is taken from tracking user accounts on Profit.ly, a trading community platform. 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.

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