6 Penny Stocks to Buy for the Biotech Boom These stocks offer low price but not extraordinary risk

There is a boom in biotech stock picks right now, thanks to innovative technologies and cutting edge treatments that allow small companies to tap into big revenue with just a single pill and FDA approval. Biotech stocks can bleed money for a short period of time, but with just one successful trial these unprofitable penny stocks can see soaring share price and buyout offers from big pharma.

And most importantly, deliver big gains to stock owners.

Of course, there is big risk in biotech investing too. If a company doesn’t have a proven track record or good management and research staff, a penny stock in this sector can collapse and leave you with nothing.

That’s why I apply some high standards to cheap biotech stocks — they must be listed on a major exchange like the NASDAQ, NYSE or AMEX, they must have a proven track record of earnings or sales success, and they have to have quantitative buying pressure backing them up.

Here are six such biotech stocks that make the grade, and could be breakout buys for investors:

Rexahn Pharmaceuticals (RNN)

Clinical stage pharmaceutical company Rexahn Pharmaceuticals (AMEX: RNN) is developing and seeking to deliver cures for cancer and disorders of the central nervous system. Over the past 12 months, this penny stock has soared an impressive +123%, compared to a gain of +18% for the Dow Jones in the same time frame. The stock has shown growth potential as of late too, and is up +32% over the past three months. (more)