Small Cap Biotech Hot Again: How To Play It
Biotech has been a hot area in this market. Whether large cap or small cap, Wall Street and Main Street have watched as biotech companies have surged. This is partly due to the safety of drug stocks, along with the optimism of future drugs. Large cap biotech Amgen, Inc. (NASDAQ: AMGN) continues to trade near its all time highs at $112.54, +1.16 (1.04%).
Today we are seeing many small cap biotech stocks surging dramatically higher. Anytime this is seen, former runners must be put on high alert as they could take off at any minute. Today, stocks like Catalyst Pharmaceutical Partners, Inc. (NASDAQ: CPRX), Arca Biopharma Inc (NASDAQ: ABIO), Opexa Therapeutics Inc (NASDAQ: OPXA) are all jumping higher.
Any small cap biotech stock that ran a huge amount in the last few months and has pulled back significantly without negative news is a possible play. They should all be on your watchlist. Some former runners include CombiMatrix Corporation (NASDAQ: CBMX), OXiGENE Inc (NASDAQ: OXGN), Rosetta Genomics Ltd. (USA) (NASDAQ: ROSG). I am in the process of slowly accumulating some Rosetta Genomics as a swing trade long in the $3.00-$3.20 area.
The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.