4 Biotech Penny Stocks to Buy: Navellier

Tickers in this article: AEZS DVAX YMI ZLCS

The following commentary comes from an independent investor or market observer as part of TheStreet's guest contributor program, which is separate from the company's news coverage.

NEW YORK (InvestorPlace) -- Some of the hottest penny stocks to buy now are in the biotech sector. Start-ups and early-phase biotechnology companies can provide explosive profit potential for investors who are in on the ground floor of a game-changing medical technology or blockbuster drug.

That said, finding hot penny stocks in the biotech sector is no easy task. There are lots of micro-caps and pink sheet stocks out there that wreak havoc on the portfolios of penny stock investors. But buying penny stocks doesn't have to be an all-out gamble -- by screening for investments with a decent market cap ($100 million or more) and a listing on a major exchange, you can find ultracheap stocks that are very fast movers but considerably less risky.

Here are my favorite four biotech penny stocks to buy now:

YM BioSciences : The first stock on the list is biopharmaceutical company YM BioSciences, which develops products for the treatment of cancer. In the last 12 months, YMI stock has gained 63%. More recently, YMI is up 8% year to date and is trading near its 52-week high of $2.52.

Zalicus : Since the start of 2011, has watched its stock value rise 44%, compared with much smaller gains by the broader markets. This biopharmaceutical company, which focuses on the treatment of pain and inflammation, has experienced stock growth of 70% since last April. Buy this stock with a 52-week range of $1.01 to $2.72. Zalicus is one of InvestorPlace.com's 10 Best Stocks for 2011.

AEterna Zentaris : Drug development company AEterna Zentaris specializes in oncology and endocrine therapy. Since the start of 2011, this penny stock has raised its stock value 8%. Investors are even more thrilled to see 52-week growth of 87%.
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  • Dynavax Technologies : Known for discovering and developing products for the prevention and treatment of infectious diseases, asthma and autoimmune diseases, Dynavax Technologies has gained 36% in the last six months. Going further back, this penny stock has shown impressive gains of 84% in the last year.

    As of this writing, Louis Navellier did not own a position in any of the stocks named here.

    Tickers in this article: AEZS DVAX YMI ZLCS