Investing in biotechnology stocks is typically reserved for speculative investors. For starters, many of these companies are clinical or pre-clinical stage companies. They’re not yet profitable, and many are even pre-revenue, meaning the long-term payoff will likely be years away.
However, many of these stocks fall into the penny stock category (i.e., stocks that trade for less than $5 per share), which is appealing to speculative traders chasing technical signals for quick profits.
