VistaGen Therapeutics Inc. (Nasdaq: VTGN) is among the top penny stocks to watch this week after climbing 135% in just three trading sessions last week.
VistaGen is a San Francisco-based clinical-stage pharmaceutical company developing drugs to treat depression and other central nervous system disorders.
Last Wednesday (Dec. 6), the company received a patent for certain methods of production of its phase 2 antidepressant, AV-101.
| Penny Stock | Current Share Price | Dec. 4 - Dec. 8 Gain (as of Dec. 8) |
| VistaGen Therapeutics Inc. (Nasdaq: VTGN) | $1.80 | 135% |
| FXCM Inc. (Nasdaq: GLBR) | $1.12 | 124% |
| Neuralstem Inc. (Nasdaq: CUR) | $2.00 | 75.44% |
| Ohr Pharmaceuticals Inc. (Nasdaq: OHRP) | $1.49 | 75.29% |
| ClearSign Combustion Corp. (Nasdaq: CLIR) | $3.50 | 53.85% |
| Astrotech Corp. (Nasdaq: ASTC) | $4.21 | 51.99% |
| Burcon NutraScience Corp. (Nasdaq: BUR) | $0.72 | 44% |
| LM Funding America Inc. (Nasdaq: LMFA) | $3.72 | 42.53% |
| Second Sight Medical Products Inc. (Nasdaq: EYES) | $1.75 | 42.28% |
| Globus Maritime Ltd. (Nasdaq: GLBS) | $1.47 | 41.35% |
As a result, its share price shot up from $0.92 to $2.52 on Wednesday. The stock pulled back to $1.80 by the end of the week, for a total gain of 135% for the week.
While VTGN's 135% gain was impressive, we're recommending a different stock to our readers today. The company we'll show you today has beaten analyst earnings expectations by an average of 40.5% in the last four quarters, and we expect more earnings growth going forward.
But before we show you our pick, here are the top 10 penny stocks to watch this week...
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While the triple-digit gains these penny stocks delivered in just five trading sessions look attractive, they come at a risk.
You see, most penny stocks are speculative investments, which can have huge price swings in a short amount of time. In this case, after climbing from $0.92 to $2.52 on Wednesday, VTGN shares fell to $1.87 by closing. And on Monday, after opening at $1.80, shares fell another $0.61, to $1.19. If you had bought in at the top, you'd be looking at losses of 52.77%.
Our Money Morning experts are more interested in finding companies that will increase in value over the long term.
That's where Money Morning Small-Cap Specialist Sid Riggs comes in.
He's an expert at bringing readers profit opportunities with massive potential at an affordable price. Consider his pick from December 2013 - Neurocrine Biosciences Inc. (Nasdaq: NBIX). NBIX was trading for just $9 per share when Sid recommended it, and now it has surged 702.77%, to $72.25.
Today, Sid recommends a medical device company whose products are used to test for HIV as well as to treat benign skin lesions through freezing.
It's the first company to sell an at-home HIV testing kit. But that's only part of the story.
Here's why this stock could take off next year...
The Best Small-Cap Medical Stock to Buy Before 2018
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The pick is OraSure Technologies Inc. (Nasdaq: OSUR), which develops medical devices that detect conditions like HIV, Zika, and influenza. The company also sells drug-screening products to detect narcotics or alcohol in a person's system.
OraSure also offers a line of over-the-counter cryosurgical devices. These let people apply intense cold to lesions, warts, and other benign spots on the skin to remove unwanted or infected tissue.
The company has a broad range of FDA-approved products. In 2010 and 2011, the FDA approved the company's blood and fingerstick HCV tests, respectively. And in 2012, its OraQuick at-home HIV test was approved.
Sid first recommended OraSure on Feb. 24, when it traded at $11.12 per share. Since then, shares are up 55.12%, to $17.25 today (Monday, Dec. 11).
But Sid keeps recommending OSUR because analysts keep underrating it. Meaning it's still a great value stock to buy today...
Since Q4 2016, OraSure has demolished analysts' earnings estimates by an average of 40.5%. As the market for HIV tests keeps growing, Sid predicts the company's winning streak of earnings reports will only continue.
"Analysts have almost perennially underestimated the company's potential - something they won't do for long," Sid said. "Which is why you don't want to delay for a New York minute if you're as interested as I am."
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