Few investments have the profit potential of penny stocks, which are stocks that trade under $5 per share.
Just take a look at Marathon Patent Group Inc. (Nasdaq: MARA), which climbed an astounding 341% during the four trading days of Thanksgiving week.
Biotech penny stocks are especially attractive since successful clinical trial results for their drugs can often send their share prices soaring 300%-plus.
That’s why today we’re giving you five of the top biotech penny stocks to buy that are all reporting clinical trial results in January 2018.
If a stock’s clinical trial results are positive, then the stock can soar. For example, the first stock on this list shot up 213% in July after the U.S. Food and Drug Administration (FDA) accepted the resubmission of its New Drug Application (NDA) for one of its drugs.
Receiving FDA approval for an NDA is typically the last major benchmark a drug must pass before it can be launched.
While these stocks have huge profit potentials, you must keep in mind that penny stocks are very speculative investments. They often see big pullbacks after making large gains.
That’s why Money Morning recommends that no more than 2% of your stock portfolio consist of such risky investments.
But if you’re willing to take the risk, some of these stocks could bring you profits of over 300% next year.
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Now get comfy and grab your calendar, because here’s the first biotech penny stock on our list today…
Biotech Penny Stocks to Buy for January, No. 5: Aeterna Zentaris Inc.
Currently trading at $2 per share, Aeterna Zentaris (Nasdaq: AEZS) makes the drug Macrilen as a potential treatment for growth hormone deficiency in adults.
On July 18, the company announced the FDA accepted its NDA for Macrilen for review. This news sent AEZS shares up from $1.02 to $3.20 in just three trading days, for a gain of 213%.