Top Picks 2007: McCamant bets on "fallen angel" biotech strategy

Posted Dec 29th 2006 2:30PM by Steven Halpern
Filed under: Newsletters, ETF Investing

Each year Steven Halpern, editor of TheStockAdvisors.com, surveys the leading financial newsletter advisors asking for their favorite stocks for the coming year. This article is part of his 24th annual Top Picks Report.

Cardium Therapeutics (OTCBB: CDTP) is the top conservative idea for 2007 from John McCamant, editor of The Medical Technology Stock Letter. He explains, "Cardium is an innovative medical technology company with two gene therapy-based drug candidates in development and an approved medical device.

"Its drug candidates and medical device are designed to harness the capacity of the human body to heal, protect, and repair. While CDTP intends to develop some products internally, they have initially focused on acquiring 'fallen angel' opportunities that have unrealized value and potential for significant growth.

"The management team has been together for over 10 years and their skill set uniquely positions them to acquire undervalued companies or assets. The key to their 'fallen angel' strategy is the ability of management to efficiently evaluate the most interesting drug candidates or devices.

"For example, CDTP's lead drug candidate, Generx, has the potential to address the short-comings of currently available treatments for angina through its ground-breaking ability to stimulate the growth of new blood vessels (angiogenesis).

"The company recently announced a Phase III trial of Generx for myocardial ischemia in women. Generx is the only current Phase III drug candidate for stable angina and the only DNA-based cardiotherapeutic ever to reach Phase III testing.

"We find it amazing that any company with a cardio drug beginning Phase III testing and an FDA-approved device on the market has a market cap of only $100 million. We encourage you to get into this company before others make this happy discovery. CDTP is a buy under $4 with a target of $7."

To see John's favorite speculative idea for 2007, click here.