This Speculative Biotech Stock Could Surge

As the market and economy bottom, investors have recently turned to the most beaten-down and speculative stocks imaginable in hopes of outsized profits.

The idea with these speculative plays is that the marginal improvement in the economy will in total have a larger affect for the smaller, more beaten-down companies than for the larger, more globally diversified ones.

It's true that solid blue-chip companies such as Apple(AAPL Quote), IBM(IBM Quote), Google(GOOG Quote) and Microsoft(MSFT Quote) are all up 25% to 45% since bottoming in early March, but there's just as many instances of smaller, more-speculative companies whose stocks have shot up 100% to 500% in the same time frame.

Such companies include Patriot Coal(PCX Quote) which hit a low of $2.76 on March 12 and closed at $10.44 on Wednesday; Cell Therapeutics(CTIC Quote), which was trading at 5 cents in early March and closed at $1.28 on Wednesday; and PetroQuest Energy(PQ Quote), which hit a low of 61 cents on March 9 and closed at $4.96 on Wednesday all in the same timeframe.

An interesting speculative stock that could be following in the footsteps of Patriot Coal and Cell Therapeutics is Bio-Imaging Technologies(BITI Quote).

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