(Business Edge columnist Gyle Konotopetz regularly profiles the top stock picks of some of Canada's most accomplished investment pros.)

FEATURED PRO: Ross Healy is CEO of Strategic Analysis Corp. (www.strategicanalysis.ca).

The Toronto firm manages investments for institutional and private clients. Healy also manages the Accumulus Talisman Fund.

Fund Form: The Accumulus Talisman Fund 'A' has a one-year return of 11 per cent, compared to the group average of 13.1 per cent.

Ross Healy

Healy's Perspective: "The market looks dicey. We have gone through a bottom-up look at the market on a stock-by-stock basis and about two-thirds of the stocks don't look all that interesting and if anything, they look like they want to deliver lower prices than exist today.

"We have actually neutralized our portfolio until we have a much clearer idea of where the market is going to take us. We are being extremely cautious. We have a large cash position and it's growing. Cash is my top pick right now."

First Star (A Short Recommendation)

* Short Sell/ACE Aviation Holdings (TSX:ACE.B) A short sell is an alternative investment strategy in which an investor attempts to profit from a decline in share price.

* Recent Price: $28.62.

* 52-Week Range: $27.90-$40.29.

* Snapshot: ACE is the holding company of the reorganization of Air Canada and its subsidiaries. Besides providing airline services through Air Canada and Jazz Air, the company also owns the Aeroplan loyalty program.

* CEO: Robert Milton.

* Head Office: Montreal.

* Vital Stats: Current Price/Earnings Ratio, 6.7; Revenue (last 12 mos), $10.1 billion; 5-Yr Revenue Growth, 1.1 per cent; Earnings (last 12 mos), $453 million; Market Cap, $2.92 billion; Shares Outstanding, 101.9 million.

* Healy's View: "The stock is unsupported, from our point of view, by its existing earnings and projected earnings. The stock has made a technical breakdown. Also, its current valuation, which is up around two times book value, is as high as Air Canada ever got when it was trading as Air Canada (prior to the restructuring), so the stock is already at the high end of its historical valuation range. Our calculated fair market value is lower than the current price of the stock, so I'm nervous. On top of everything else, the transportation index looks like it's broken (from a technical analyst standpoint) as well, so there's a certain amount of negative sentiment from that as well."

* Risk Rating: High (based on general risk of shorting stocks).

* Web Watch: www.aircanada.com

Second Star

* Petro-Canada (TSX:PCA)

* Recent Price: $50.79.

* 52-Week Range: $39.51-$59.40.

* Snapshot: Petro-Canada is an integrated oil and gas company with a diversity of operations in the upstream and downstream sectors.

* CEO: Ron Brenneman.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 15.1; Revenue (last 12 mos), $18.5 billion; 5-Yr Revenue Growth, 11.9 per cent; Earnings (last 12 mos), $1.8 billion; 5-Yr Earnings Growth, 15.1 per cent; Market Cap, $25.4 billion; Shares Outstanding, 500.8 million; Dividend Yield, 0.78 per cent.

* Healy's View: "It's the cheapest of the integrated oil companies, trading at around two and a half times book value compared to Imperial Oil (TSX:IMO), at about five and a half (times book value), and Shell Canada (TSX:SHC) at about four (times book value). Petro-Canada also has good upside potential. I like the large-cap energy stocks overall. However, if we have a bear market, don't expect that they (energy stocks) are going to stand aside. So what you want to do is find good relative value within the energy grouping that will provide some defensive value. And a stock like Petro-Canada provides that."

* Healy's Risk Rating: Medium.

* Web Watch: www.petro-canada.com

Third Star

* BCE Inc. (TSX:BCE)

* Recent Price: $25.85.

* 52-Week Range: $25.32-$35.87.

* Snapshot: BCE is Canada's largest communications company, with Bell Canada as its core business.

* CEO: Michael Sabia.

* Head Office: Montreal.

* Vital Stats: Current Price/Earnings Ratio, 14.1; Revenue (last 12 mos), $19.3 billion; 5-Yr Revenue Growth, 2.8 per cent; Earnings (last 12 mos), $1.7 billion; 5-Yr Earnings Growth, 15.6 per cent; Market Cap, $23.04 billion; Shares Outstanding, 891.4 million; Dividend Yield, 5.15 per cent.

* Healy's View: "At this juncture, if I have to pick a third stock, I'm looking for something that is reasonably defensive and safe. And I think that probably describes BCE. I know the company is being beaten up and all that kind of stuff, but it's in the price and the company also offers a yield of five per cent. I don't particularly like the company, but what I'm trying to do is avoid getting into stuff where I might get killed. Unfortunately, I can't see too many. I don't see much upside in this stock."

* Healy's Risk Rating: Low.

* Web Watch: www.bce.ca Healy's Edge Record (past 12 mos): +22 per cent. Best Pick: Teck Cominco (TSX:TCK.A) +59.6 per cent. Worst Pick: Canadian Tire (TSX:CTC.A) -4.8 per cent.

Disclosure: Healy owns shares in the Accumulus Talisman Fund. Petro-Canada is one of the long-position holdings in the fund. BCE and ACE Aviation are not held in the fund either as long or short positions.

(This feature is provided for information purposes. Investors are advised to do their own research or consult a qualified investment professional before making investment decisions.)

(Gyle Konotopetz can be reached at gyle@businessedge.ca)