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

FEATURED PRO: Danny Deadlock is an independent equity analyst based in Hanna. He publishes an online newsletter known as Microcap.com (www.microcap.com) that focuses on smaller companies.

Deadlock’s Perspective: “After experiencing triple-digit gains on most of our tech picks earlier this year, we’re now focusing a lot of our attention on mining and oil and gas stocks. Mining exploration stocks have been on a tear, and if gold breaks $400 (US) an ounce, you can expect stocks in the junior mining sector to continue to boast high market caps.

“China has also been a hot commodity this year, and with the size and growth of its economy, we expect 2004 to be no different. Stocks with exposure to China should do extremely well.”



FIRST STAR
* Matamec Exploration (MAT-TSXV)
* Recent Price: $0.23.
* 52-Week Range: $0.06-$0.24.
* Snapshot: Matamec is one of the most active exploration companies in the Precambrian Shield of Quebec. The company is actively exploring for gold and developing the recently identified Sakami property.
* CEO: Andre Godbout.
* Head Office: Val d’Or, Que.
* Vital Stats: Revenue (last 12 mo.), $100,000; Profit/Losses (last 12 mo.), $100,000 Loss; Market Cap, $4.13 million; Shares Outstanding, 17.97 million.
* Deadlock’s View: “Matamec has a very small market cap in comparison to its peers, primarily because Quebec-based companies see little promotion on the TSX. However, the company’s Properties are impressive and Matamec’s $4-million market cap leaves significant room for appreciation in 2004 as
financing is raised and exploration activities increase.
They have low working capital but minimal debt, and financing is expected soon as the market environment is very favourable for raising
capital. This company has typical risks associated with grassroots exploration companies.”
* Deadlock’s Risk Rating: High.
* Web Watch: www.matamec.com



SECOND STAR
* Vulcan Minerals (VUL-TSXV)
* Recent Price: $0.37.
* 52-Week Range: $0.15-$0.45.
* Snapshot: Vulcan is a junior
exploration company that is searching for new petroleum and mineral deposits in Eastern Canada.
* CEO: Patrick Laracy.
* Head Office: St. John’s, Nfld.
* Vital Stats: Revenue (last 12 mo.), $100,000; Profit/Loss (last 12 mo.), $800,000 Loss; Market Cap, $5.70 million; Shares Outstanding, 15.41 million.
* Deadlock’s View: “Offshore Newfoundland boasts some enormous oil and gas deposits, but onshore is in its infancy compared to Western Canada. Vulcan holds a large land position in the province and will be drilling three wells this winter in what many speculate will attract a significant amount of interest in the region. The company also holds several mineral exploration projects but the emphasis will be on oil exploration this winter. They are a pure exploration play with no production of minerals or petroleum. The company is very well run with a management group that is well
connected and well respected in Newfoundland, and also well known in Calgary.”
* Deadlock’s Risk Rating: High.
* Web Watch: www.vulcanminerals.ca



THIRD STAR
* MedMira (MIR-TSXV)
* Recent Price: $1.06.
* 52-Week Range: $0.72-$2.15.
* Snapshot: MedMira is a biotechnology company that develops, manufactures and markets a new generation of rapid diagnostic tests and instrumentation to aid in the diagnosis of both infectious and non-infectious human diseases.
* CEO: Stephen Sham.
* Head Office: Toronto.
* Vital Stats: Revenue (last 12 mo.), $1.2 million; Profit/Loss (last 12 mo.), $4.6 million Loss; Market Cap, $26.78 million; Shares Outstanding, 25.64 million.
* Deadlock’s View: “This company has recently come off its 52-week low following substantial news out of China over a contract to supply an HIV test kit through almost 10,000 drugstores. Stocks with exposure to China have done extremely well and MedMira should also do very well. The company’s working capital is low but we believe recent corporate developments will allow them to raise money while investors look for
exposure to China.”
* Deadlock’s Risk Rating: High.
* Web Watch: www.medmira.com

Deadlock’s Edge Record: +64.8%. Best Pick: Marimba (MRBA-Nasdaq) +214.5%. Worst Pick: International Utility Structures (IUS-TSX) -66.7%.

Disclosure: Deadlock says he owns small positions in the featured stocks.