Small biotech stocks are notorious for their price volatility.

The reason behind this is the nature of the stocks themselves.

Small biotech companies don’t have the capabilities of funding a lot of different projects, and oftentimes might only have one or two drugs or therapies in the pipeline for the FDA to approve.

Because of this their stock is ride or die.

One day they could be a $2 stock, the next a $50 stock and then the week after back down to $10.

And yesterday’s action in the biotech space showed how crazy it could really get.

But instead of going from having this crazy swing in a week…

One company went from $5 to $77 in the course of a single day, as the graph below shows…

That company was Orphazyme A/S (NASDAQ: ORPH), and on June 17, the FDA was set to review its drug arimoclomol for Niemann-Pick disease Type C (NPC), a genetic mutation that has been called pediatric Alzheimer’s.

Yesterday, I recommended my readers in FDA Profit Alert buy shares of this company well before the FDA review deadline on the 17th.

If approved, this company’s stock would shoot up to potentially triple-digit gains.

Traders, however, weren’t going to wait that long make their decision…

Within hours, fervor began to grow on social media platforms like Twitter, and the stock just kept going up and up…

By the end of the day, the stock was halted 20 times to let it breathe and stop it from getting out of control.

And today, the stock is still seeing double-digit swings either way as it tries to consolidate its price.

This kind of action solidifies my theory with regard to biotech.

The stocks out there with the biggest and best opportunities are the smallest names out there.

Johnson & Johnson, Pfizer, Merck… names like that are already worth tens to hundreds of billions of dollars.

Year to date, even though Pfizer came out with a COVID-19 vaccine used by hundreds of millions of people…

Their stock is up 25% since a year ago.

Compare that with ORPH’s gains and you’ll see where the biggest bang for your buck lies.

Readers of my FDA Profit Alert yesterday were able to potentially come out with a 275% winner in just one day of trading.

It also speaks to the point I’ve been making for the last couple months.

You do the best in the markets by investing in the companies that are doing the best for the world.

To a bright future,

Ray Blanco
Chief Technology Expert, Technology Profits Daily