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

FEATURED PRO: Ross Healy is president of Toronto-based Strategic Analysis (www.strategicanalysis.com), an investment firm that advises large institutional investors and emphasizes value investing, capital preservation and stocks that pay attractive dividend yields.

Healy’s Perspective: Cautious, as usual.

“I don’t know what will happen (in 2003). I think this is a market which, under certain circumstances, could go either way big time, and it could move particularly hard to the down side. I’m very, very cautious.”

(NOTE: Healy’s picks are not chosen in order of preference.)



FIRST STAR
* Hudson’s Bay Company (HBC-TSX)
* Recent Price: $8.92.
* 12-Month Range: $5.87-$15.55.
* Snapshot: Hudson’s Bay is Canada’s oldest corporation, incorporated in 1670, and the country’s largest department store retailer with more than 50 stores, including The Bay, Zellers and Home Outfitters. It is Canada’s fifth-largest employer.
* CEO: George Heller.
* Head Office: Toronto (70,000 employees).
* Vital Stats: Current Price/Earnings Ratio, 11.0; Revenue (last 12 mos), $7.5 billion; 5-Yr Revenue Growth, 3.4%; Profit (last 12 mos), $69.4 million; Market Cap, $617.59 million; Shares Outstanding, 69.24 million; Dividend Yield, 4.04%.
* Healy’s Comment: “It’s trading at a big discount to book and it has a big yield. That’s an ideal combination. Their balance sheet is perfectly fine as far as I’m concerned. I think it’s a superb piece of paper.”
* Healy’s Risk Rating: Low.
* Web watch: www.hbc.com



SECOND STAR
* Canadian Natural Resources (CNQ-TSX)
* Recent Price: $46.80.
* 12-Month Range: $37.60-$54.50.
* Snapshot: CNQ has major holdings in Western Canada, the U.S., the North Sea and West Africa with proven reserves of about 790 million barrels of oil and 2.7 trillion cubic feet of natural gas. It beefed up production in 2002 by acquiring Rio Alto Exploration.
* CEO: John Langille.
* Head Office: Calgary (1,186 employees).
* Vital Stats: Current Price/Earnings Ratio, 12.4; Revenue (last 12 mos), $3.4 billion; 5-Yr Revenue Growth, 38%; Profit (last 12 mos), $419.1 million; 5-Yr Revenue Growth, 38%; Market Cap, $6.26 billion; Shares Outstanding, 133.76 million; Dividend Yield, 1.07%.
* Healy’s Comment: “I like the oil and gas stocks. I think they need to be purchased because seasonally they’re coming into their own. CNQ is probably one of the cheapest in terms of price-to-book (ratio).”
* Healy’s Risk Rating: Low.
* Web watch: www.cnrl.com



THIRD STAR
* Newmont Mining (NEM-NYSE)
* Recent Price: $29.03.
* 12-Month Range: $18.52-$32.75.
* Snapshot: Newmont is the world’s largest gold producer, winning that distinction in the past two years with three major acquisitions – Battle Mountain Gold, Franco-Nevada and Normandy Mining. It has proven reserves of about 86 million ounces with its largest operations in North America and Australia.
* CEO: Wayne Murdy.
* Head Office: Denver, Colo. (10,600 employees).
* Vital Stats: Current Price/Earnings Ratio, 88.0; Revenue (last 12 mos), $7.5 billion; 5-Yr Revenue Growth, 3.4%; Profit (last 12 mos), $69.4 million; Market Cap, $617.59 million; Shares Outstanding, 69.24 million; Dividend Yield, 4.04%.
* Healy’s Comment: “Any gold stock is fine. Bullion’s breaking out and the (U.S. Federal Reserve) is doing
stupid things, so I think you need some gold as a hedge. The Fed is pumping credit into an economy that doesn’t want to spend it. That’s not a good thing.”
* Healy’s Risk Rating: Low.
* Web watch: www.newmont.com
* Healy’s Record (since Nov. 8, 2001): +5.3%. Best pick: Newmont Mining +32.9%. Worst Pick: Barrick Gold -11.5%.
* Disclosure: Healy says he may hold positions indirectly in the featured stocks through mutual funds.