The Trends of biotech Penny Stocks
The Trends of biotech Penny Stocks
Is biotech penny stocks just a “fad” that will eventually fade away? If you have been following the market, you probably have some of these questions. Let me assure you, they are not a “fad.” In fact, biotech is beating all other sectors, which includes energy, tech, or natural gas. In fact, biotech’s long-term record hasn’t even been near that of any other stock.
I am not sure when the biotech penny stocks are going to go up again, but why would I suggest that now? Well, there is a lot of news in the news regarding biotechnology, and I’ve written about some of it already. For instance, there is a huge clinical trial happening in China right now. That means that a new pharmaceutical company can develop a new therapy for diseases like Alzheimer’s, Parkinson’s, and Multiple Sclerosis. Many of these diseases affect people at various stages of their lives, and it would be fantastic if a new drug could be discovered that could prolong someone’s life for that length of time. If this company is successful, it could mean that many lives are saved every year!
One thing that I find encouraging in the news is the statements by some big pharmaceutical companies that they are going to start clinical trials on new drugs within the next few years. This is positive news for the biotech industry, especially when you consider that they are also investing millions of dollars into these studies. If these drugs are successful, it will mean that the profits of the pharmaceutical companies will soar. For the individual investor, it means that you may finally get a return on your investment from these stocks!
Another reason that I think we are seeing an upswing in trading of biotech penny stocks in the next few years is because the Food and Drug Administration is expecting to finalize the Investigational Drug Application for my favorite drug, Permeability for Fungal Skin Infection (PFE). This drug is really exciting because it potentially may treat some of the symptoms of Fungal Skin Diseases. If the final applications are successful, it could make curing skin fungal infections very easy. This could mean that there is a lot of money to be made as the market for these pharmaceuticals expands.
Lastly, there is one more area of health where pharmaceuticals are making a comeback and that is in the area of nutraceuticals. There are hundreds of pharmaceutical products that have not made it to the market and that have been pushed to the side because of a few major safety issues. However, now that the final applications have been approved, more of these nutraceuticals are being released to the public. In fact, in some cases, investors are trading these small cap biotech penny stocks to make a little money off the rest of the larger cap stocks. The bottom line is that investors have to be careful when buying into these biotech stocks. They need to stay away from the biotech penny stocks unless they can carefully track the small cap stocks’ performance along with their own portfolio.
There is no doubt that there is a large profit potential in biotech penny stocks. However, before an investor can buy into these stocks they need to be very familiar with the market, the sectors, and the industries that an investor wants to invest in. Without this information an investor risks spending too much money on a stock that does not fit into their portfolio. So, before investing in these stocks an investor needs to do their homework and find out exactly what each stock will do and how it is doing.