(Every week, Business Edge columnist Gyle Konotopetz profiles the top three stock picks of one of Canada’s most accomplished investment pros.)

FEATURED PRO: Jean-Francois Tardif is a senior portfolio manager at Sprott Asset Management, a Toronto-based firm that manages assets valued at more than $1.08 billion.

Fund Form (one-year returns): Sprott Canadian Equity Fund, 35.7%; Sprott Gold and Precious Minerals Fund, +127.0%; Sprott Hedge Fund, +4.5%; Sprott Bull/Bear RSP Fund, +8.8%. Management expense ratios range from 2.0% to 2.5%.

Website: www.sprottassetmanagement.com

Tardif’s Perspective: “We remain very bearish and think 2004 will be a very difficult year for the stock market. A lot of people say that in a (U.S.) election year the stock market does well, but we believe the consumer is financially strapped and continues to pile up debt and refinance homes. Eventually, the consumer will have to spend less.

“When interests rates go up, as we believe they will, this will affect everyone negatively. We strongly believe that the market won’t go up and, if it does, we believe it will go up very little and it’s very likely to drop. We are also bullish on gold stocks long term, although we believe it’s very possible there may be a short-term correction since they’ve moved so much. But we’re holding gold stocks, we’re not trading them.”



FIRST STAR
* Newalta Income Trust (NAL.UN-TSX)
* Recent Price: $16.13.
* 52-Week Range: $7.80-$16.15.
* Snapshot: Newalta is an income trust that focuses on the recovery of salable oil, gas and industrial waste products and the recycling of those products.
* CEO: Alan Cadotte.
* Head Office: Calgary (373 employees).
* Vital Stats: Current Price/Earnings Ratio, 18.3; Revenue (last 12 mos), $149.2 million; 5-Yr Revenue Growth, +20.5%; Earnings (last 12 mos), $21.5 million; 5-Yr Revenue Growth, 61.4%; Market Cap, $367.42 million; Shares Outstanding, 22.78 million; Dividend Yield/Monthly Distribution, 5.3%/10.5 cents per trust unit.
* Tardif’s View: “Newalta will be looking at acquisitions which would be accretive to earnings, cash flow and
distribution. They have a very strong distribution of 10.5 cents per month (per trust unit) and we think the
distribution is going to go even higher in 2004. The
company also trades at a very reasonable valuation.”
* Tardif’s Risk Rating: Moderate.
n Web Watch: www.newalta.com



SECOND STAR
* Pulse Data Inc. (PSD-TSX).
* Recent Price: $1.49.
* 52-Week Range: .81-$1.55.
* Snapshot: Pulse Data is a seismic data library company that specializes in the development, marketing, shooting and licensing of non-exclusive seismic surveys in the Western Canadian Sedimentary Basin.
* CEO: Ken MacDonald.
* Head Office: Calgary (46 employees).
* Vital Stats: Current Price/Earnings Ratio, 8.0; Revenue (last 12 mos), $36.9 million; 5-Yr Revenue Growth, 1,908.2%; Earnings (last 12 mos), $6.9 million; Market Cap, $60.21 million; Shares Outstanding, 40.40 million; Dividend Yield, 1.70%.
* Tardif’s View: “We believe they will make 25 cents cash flow (per share) next year and the stock trades at only about eight times earnings. As natural gas companies spend more and more money on seismic services, we believe that this company will be a major
beneficiary of that.”
* Tardif’s Risk Rating: High.
* Web Watch: www.pulsedatainc.com



THIRD STAR
* CCS Income Trust (CCR.UN-TSX)
* Recent Price: $30.50.
* 52-Week Range: $16.25-$31.50.
* Snapshot: CCS provides oilfield waste treatment and disposal solutions and other oilfield services. Its Concord division operates service rigs and its ProDrill division provides drilling fluid technologies.
* CEO: David Werklund.
* Head Office: Calgary.
* Vital Stats: Current Price/Earnings Ratio, 19.3; Revenue (last 12 mos), $154.6 million; 5-Yr Revenue Growth, 29.7%; Earnings (last 12 mos), $37.0 million; 5-Yr Earnings Growth, 36.6%; Market Cap, $507.31 million; Shares Outstanding, 16.63 million; Dividend Yield/Monthly Distribution, 5.20%/16.5 cents per trust unit.
* Tardif’s View: “What you get here is a great growth company with an increasing distribution. Although this stock has had a good move, the company has continued to increase its distribution and we believe that this year they will continue to increase it.”
* Tardif’s Risk Rating: Moderate.
* Web Watch: www.ccsincometrust.com

Tardif’s Edge Record (15 stocks): +53.5%. Best Pick: Golden Star Resources (GSC-TSX) +239.3%. Worst Pick: Bonavista Energy Trust (BNP.UN-TSX) -38.3%.

Disclosure: Tardif holds positions in the funds in which the featured stocks are held.