"Genentech (NYSE: DNA), the world leader in cancer treatment, has been weak following its third quarter earnings report," notes biotech sector expert John McCamant.

In his The Medical Technology Stock Letter, he explains, "What we are seeing with DNA's stock represents an irrational overreaction by Wall Street, and one that should be taken advantage of by investors."

The advisor notes, "Starting with their earnings, DNA reported non-GAAP operating revenues of $2.91 billion, and U.S. product sales of $2.2 billion, for the third quarter. These figures represent an increase of 22% and 18%, respectively, over the same figures reported during last year's third quarter.

"As such, we are pleased with the growth that DNA has continued to produce. However, because revenue came in a little shy of analysts' consensus expectation, the stock has sold off. We would note one glaring positive which DNA just isn't getting much credit for anymore. That is, even at its already huge size, the company still expects to produce impressive growth for the full year (and in the years to come)."

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.

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.

Sonus Pharmaceuticals, Inc. (NASDAQ: SNUS) is the top speculative pick for 2007 from John McCamant. The editor of The Medical Technology Stock Letter says, "Sonus is one of the more exciting companies in the biotech investment arena.

"The firm is intently focused on the development of superior versions of existing cancer drug treatments that not only offer potentially improved efficacy, but also significantly more attractive safety profiles. Their lead product candidate, TOCOSOL Paclitaxel, is a reformulated version of paclitaxel, which belongs to the taxane class of chemotherapeutics -- which are among the most successful and frequently used.

"However, existing treatments have unattractive safety profiles; Sonus's treatment may be a significant improvement, and we will not have to wait much longer to find out. SNUS just recently completed enrollment in their over 800-patient Phase III trial for metastatic breast cancer treatment. We can expect results in the second half of next year, and if positive, the company will file for approval by the end of 2007.