penny stocks pulling back

The biotech sector has been one of the high growth spaces over the past decade or so. It remains one of the hottest sectors for stock market investors. When a particular sector has the potential for expansion than even smaller companies, like penny stocks, in the sector have growth opportunities.

So, it’s worthwhile to have a look at some of the penny stocks in the biotech sector. In order to choose such a stock, an investor needs to watch the market closely and track the latest movements. Here is a look at three penny stock worth tracking.

Unfortunately, bear markets are very real especially when it comes to penny stocks. Let’s face it, no stock goes up forever. Also, volatility doesn’t always mean a money-making trade. In this instance, it’s important to take your risk profile into heavy consideration.

Biotech Penny Stocks #1: Sienna Biopharmaceuticals (SNNA)

One of the biotech penny stocks that experienced a significant jump on Thursday was Sienna Biopharmaceuticals Inc (SNNA Stock Report). On November 13, the company made a significant announcement with regard to its future. It revealed that it has started Chapter 11 or bankruptcy procedures and more importantly, bids are going to be placed in order to take the company over.

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The deadline for the submission of bids has been set at 5 P.M. on December 2. The possibility of a bidding process and the takeover of the company by another party have sparked extreme interest. On Thursday, the stock soared by as much as 68.75%. That’s great but it was fleeting.

biotech penny stocks Sienna Biopharmaceuticals (SNNA)

On Friday shares of SNNA stock dropped almost all the way back to where they were before Thursday’s big move. So now the real question is this: will Sienna recover or are shares set to plummet further next week?

Biotech Penny Stocks #2: Celsion Corporation (CLSN)

The other biotech penny stock that made a strong move on Thursday was Celsion Corporation (CLSN Stock Report). On Wednesday, it emerged that the company’s study of lyso-thermosensitive liposomal doxorubicin was published in a leading journal.

The journal in question is the International Journal of Hyperthermia. Considering the fact that it is a peer-reviewed journal, it represents a significant development for Celsion Corporation.

biotech penny stocks Celsion Corporation (CLSN)

Following this development, investors piled on to the stock and it rallied by as much as 28.70%. But again, like SNNA, CLSN stock gave back all of its gains on Friday. If you look at the chart, you clearly see this in all of its bearish glory. Does next week have more downward pressure in the cards or can this biotech stock bounce?

Biotech Penny Stocks #3: Kadmon Holdings (KDMN)

Last but not least, the Kadmon Holdings Inc (KDMN Stock Report) stock was the other biotech penny stock that enjoyed a strong rally on Thursday after a significant announcement. The company announced that it is going to make a public offering of 26,000,000 of its common stocks and the offering is going to be made at the price of $3.40 per share.

The development resulted in a 10% rise in the stock on Thursday. It should be noted that the Kadmon stock has actually rallied by as much as 40% in November alone. Though KDMN stock rallied higher, it also came back on Friday.

biotech penny stocks Kadmon Holdings (KDMN)

Compared to the previous 2 penny stocks, however, shares didn’t completely give back previous gains. Still, Kadmon traded lower to close the week and that should be something to note if it’s one of the penny stocks on your watch list right now.

Biotech Penny Stocks #4: Exicure (XCUR)

The final biotech stock on this list that experienced a strong rally is Exicure Inc (XCUR Stock Report). The company made a major announcement yesterday and the stock had soared by as much as 11.50% on Thursday. Exicure announced that it has entered into a collaboration with Allergen but way of which it is going to develop hair loss disorder treatments.

More importantly, the company is also going to receive $25 million by way of an upfront payment. That is not all. If certain milestones are hit then Exicures stands to make $97.5 million and in addition to that, there is the possibility of earning as much as $265 million for each commercial program. This is all fun and games but Friday’s session didn’t help anything.

biotech penny stocks Exicure (XCUR)

Not only did XCUR stock give back all of its gain from Thursday, but it also set a new low for the week. Furthermore, the biotech penny stock tumbled lower in aftermarket trading to lows of $2.37. Can this recover next week or will it continue falling?

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