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

FEATURED PRO: Danny Deadlock is an independent equity analyst based in Hanna. He publishes the Microcap newsletter at www.microcap.com and also writes a stock-picking column for Stockhouse (www.stockhouse.ca).

Deadlock's Perspective: "For small cap and microcap stocks, the first quarter of the year is typically one of the strongest periods. January, as a rule, is particularly good for smaller stocks as a renewed sense of optimism seems to affect everyone as they're in a buying mood.

"However, for 2005, there is still a significant element of risk to the markets, thanks to a weak U.S. dollar and the threat of high oil prices. It's not something we're overly concerned about, but having exposure to gold and oil/gas stocks is often a good hedge. We expect the resource sector to perform well this year."

Danny Deadlock

First Star

* Pinnacle Resources (U.S. OTCBB:PNRR)

* Recent Price: $0.18 US.

* 52-Week Range: $0.08-$0.22.

* Snapshot: Pinnacle is a junior exploration company focused on South Africa and targeting gold, diamonds, tantalum (used in electronic components) and vanadium (used in the steel industry and in fuel cells).

* CEO: Glen Gamble.

* Head Office: Denver.

* Vital Stats: Revenue/Earnings, N/A; Market Cap, $3 million US; Shares Outstanding, 16.57 million.

* Deadlock's View: "Pinnacle is so far under the radar screen of investors that it's actually ridiculous. This allows one to speculate ahead of the crowd but it also presents risks in trying to buy at a good price, as liquidity on the OTC (Over The Counter Bulletin Board Exchange) can be tight until the price moves up a bit.

"More than anything else, this is a play on vanadium, which is a key ingredient in making steel. Steel and stainless steel are in very high demand globally and that demand will only increase, thanks to growth in India and China. Pinnacle is sitting on a huge South African vanadium deposit that we're speculating will eventually attract some serious interest from Japanese steel mills."

* Deadlock's Risk Rating: High (based on political risks of doing business in South Africa and fluctuation of commodity prices).

* Web Watch: www.pnrr.net

Second Star

* Black Bull Resources (TSXV:BBS)

* Recent Price: $0.41.

* 52-Week Range: $0.31-$1.20.

* Snapshot: Black Bull's mineral property in Nova Scotia hosts a large resource of high-quality quartz, kaolin and mica minerals and covers some 1,650 hectares. The property, known as White Rock, is 100-per-cent owned by Black Bull and contains 12.2 million measured and indicated tonnes of quartz.

* CEO: Donald Hilton.

* Head Office: Shelburne, N.S.

* Vital Stats: Revenue (last 12 mos), N/A; Earnings/Loss (last 12 mos), $1.6 million Loss; Market Cap, $18.12 million; Shares Outstanding, 44.19 million.

* Deadlock's View: "Don Wright, the former deputy chairman of TD Bank, recently bought 8.6 million shares of Black Bull Resources, making him the largest shareholder.

He is now the company's chairman.

"The company's quartz is considered a premium material that merits premium pricing from $50-$800 per tonne and there is a possibility of extending the resource to as much as 100 million tonnes. That would make this one of the world's largest deposits of its kind.

"The kaolin has a grade of 23 per cent, which is roughly double that of current suppliers. With only 20 per cent of the property explored, Black Bull has a measured and indicated resource of 4.2 million tonnes of kaolin. Canada currently has no suppliers of kaolin although newsprint contains about eight per cent kaolin and tests are under way to increase that percentage as the mineral is cheaper than wood fibre."

* Deadlock's Risk Rating: High (based on unforeseen costs and hurdles associated with startup of a new mine and establishing sales channels).

* Web Watch: www.blackbullresources.com

Third Star

* Strategic Technologies (TSXV:STI)

* Recent Price: $0.315.

* 52-Week Range: $0.24-$0.60.

* Snapshot: Strategic is a developer and supplier of industry-leading wireless tracking and monitoring systems, principally serving the U.S. corrections and federal law-enforcement agencies. The company and its subsidiaries have spent the past 10 years developing innovative, proprietary hardware and software wireless solutions for tracking assets and people.

* CEO: Douglas Blakeway.

* Head Office: Surrey, B.C.

* Vital Stats: Revenue (last 12 mos), $6.1 million; 5-Yr Revenue Growth, -4.0 per cent; Earnings/Loss (last 12 mos), $600,000 Loss; Market Cap, $5.91 million; Shares Outstanding, 18.77 million.

* Deadlock's View: "Strategic has wireless and RFID (radio frequency identification device) technologies that have extensive global security applications. Prison over-crowding, national security and terrorism are major issues and Strategic has some impressive technology for addressing many aspects of these concerns. Validation of their business model and technology comes from the type of clients they have, including the RCMP, FBI, the U.S. Secret Service, the IRS, the U.S. military and the French Ministry of Justice.

"There are few players globally in this industry, but competition will always be a factor. The company lost a significant contract in the U.K. the past fall to competition."

* Deadlock's Risk Rating: High (based on competitive issues).

* Web Watch: www.strategic-tech.com Deadlock's 2004 Edge Record: +2.4 per cent.

Best Pick: Telecom Communications (OTCBB:TCOM) +34 per cent. Worst Pick: Connacher Oil & Gas (TSX:CLL) -57.5 per cent.

Disclosure: Deadlocks says he holds small positions in the featured stocks.