Biotechnology Stocks Thrive in Spite of Difficult Market; Special Report by Leading Financial Web Site Penny Stock Detectives

In a recent Penny Stock Detectives article, editor Mitchell Clark points out that in a stock market without a tailwind and no real trend.

New York, NY (prHWY.com) August 10, 2012 - In a recent Penny Stock Detectives article, editor Mitchell Clark points out that in a stock market without a tailwind and no real trend, event-driven trades offer the best bang for your buck as a speculator. Clark notes that one of the best sectors for penny stock speculators is biotechnology stocks--a sector that thrives on institutional participation for the simple reason that, no matter what the economy is doing, people need their pharmaceuticals.
"Biotechnology stocks are just like gold penny stocks--they're high risk. But biotechnology stocks trade on their own news; you don't have to worry about commodity prices or the rest of the stock market for that matter. And they can really move, even in a down market," Clark claims.
Clark believes Vical is one penny stock worth illustrating, noting it recently experienced a nice pop in its share price just by starting a new round of road-show conferences with investment banks. Wall Street is a big participant in biotechnology stocks, and liquidity in this sector is often robust.
This penny stock generated some good trading action with these road shows, and the stock moved from $3.00 in mid-June to a high around $3.70 by the end of the month, when the rest of the stock market action was lousy, Clark reports.
According to Clark, another penny stock that recently had a great event-driven move on the stock market was Trius Therapeutics. This biotechnology company was awarded a contract worth up to $29.5 million from the Defense Threat Reduction Agency (DTRA) in 2010 to develop new antibiotics for military applications, observes Clark.
Clark notes that after Congress passed the Generating Antibiotic Incentives Now (GAIN) Act, which contains incentives for biotech companies to develop antibiotics to treat life-threatening infections, Trius shares went up sharply, recently hitting around $6.30 a share from a tight trading range around $5.00. That's a 26% return just trading off the news, he reports.
Clark believes biotechnology stocks (both larger-cap and penny stocks) are perhaps the most attractive for speculators in this kind of market. The sovereign debt crisis in Europe is very real, and the U.S. economy is due for a technical recession, but a new drug approval or other similar event will always garner interest from Wall Street, because consumers and investors spend big money on pharmaceuticals.
To see the full article and to learn more about Penny Stock Detectives, visit www.pennystockdetectives.com.

The editors of Penny Stock Detectives believe low-priced stocks, when researched properly, present investors with great opportunities to accumulate wealth and to increase the value of their investment portfolios. You can learn more about Penny Stock Detectives at www.pennystockdetectives.com.

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Tag Words: penny stock, biotechnology stocks, pharmaceutical

Categories: Business

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