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

Jean-Francois Tardif

FEATURED PRO: Jean-Francois Tardif is a senior portfolio manager at Sprott Asset Management. The Toronto-based firm manages assets valued at about $1.5 billion for institutional investors, endowments and high net-worth individuals through its funds. The company is launching a new hedge fund this month.

Fund Form: One-year returns are as follows: Sprott Canadian Equity Fund, +41.6 per cent; Sprott Gold and Precious Minerals, +72.7 per cent; Sprott Hedge Fund, -1.4 per cent; Sprott Bull/Bear RSP Fund, 0.3 per cent.

Management Expense Ratios range from two per cent to 2.5 per cent.

Website: www.sprottassetmanagement.com

Tardif’s Perspective: “I particularly like the energy sector and I believe the oil prices are telling you there’s a major problem in world energy supplies. There’s a huge increase in demand for energy from Asia, especially China. Looking out five to 10 years, I see a huge problem with energy supplies and consequently higher oil prices.

“We also continue to favour the outlook for gold because a lot of countries like Japan, China and the U.S. are printing a lot of money. The debasement of currencies will continue to be good for gold stocks and also silver stocks.” First Star n Cameco Corporation (CCO-TSX)



FIRST STAR
* Recent Price: $64.30.
* 52-Week Range: $29-$78.
* Snapshot: Cameco supplies uranium products to world markets for the generation of electricity in nuclear energy plants.
* CEO: Gerald Grandey.
* Head Office: Saskatoon, Sask. (1,405 employees).
* Vital Stats: Current Price/Earnings Ratio, 17.9; Revenue (last 12 mos), $826.9 million; 5-Yr Revenue Growth, +2.1 per cent; Earnings (last 12 mos), $216 million; Market Cap, $3.61 billion; Shares Outstanding, 56.20 million; Dividend Yield, 0.90 per cent.
* Tardif’s View: “Cameco is a play on energy. It’s the biggest holder of some of the highest-quality uranium deposits in Canada. What’s particularly interesting with this company is that it owns about 30 per cent of Bruce Power in Ontario at a time when it is anticipated there will be a shortage of power in the province in 2006 and 2007. As a result, there is talk about increasing the production of electricity from nuclear sources in Ontario.
“We believe that if it’s happening in Ontario, this will also happen around the world, driving up uranium prices. Because of Cameco’s strong position in the uranium market, we believe it will allow them to invest in uranium plants around the world. Cameco has already announced its intention to buy one of the newest nuclear plants in the U.S.”
* Tardif’s Risk Rating: Medium.
* Web Watch: www.cameco.com



SECOND STAR
* Pulse Data Inc. (PSD-TSX)
* Recent Price: $1.63.
* 52-Week Range: .81-$1.99.
* Snapshot: Pulse Data is a seismic data library company that develops, markets, shoots and licenses non-exclusive seismic surveys in the Western Canadian Sedimentary basin.
* CEO: Ken MacDonald.
* Head Office: Calgary (46 employees).
* Vital Stats: Current Price/Earnings Ratio, 9.8; Revenue (last 12 mos), $36.9 million; 5-Yr Revenue Growth, 1,908 per cent; Earnings (last 12 mos), $6.9 million; Market Cap, $65.8 million; shares Outstanding, 40 million; Dividend Yield, 2.90 per cent.
* Tardif’s View: “This company will benefit from the high activity in the oil and gas sector because of its seismic technologies. I believe they will make 25 cents in earnings (per share) this year.” n Tardif’s Risk Rating: High.
* Web Watch: www.pulsedatainc.com



THIRD STAR
* Dorel Industries (DII.B-TSX)
* Recent Price: $43.99.
* 52-Week Range: $33.29-$47.50.
* Snapshot: Dorel manufactures children’s products such as strollers and furniture and recently broadened its product line by acquiring Pacific Cycle, maker of Schwinn bicycles, for $310 million US.
* CEO: Martin Schwartz.
* Head Office: Montreal (3,600 employees).
* Vital Stats: Current Price/Earnings Ratio, 14.5; Revenue (last 12 mos), $1.5 billion; 5-Yr Revenue Growth, 15.9 per cent; Earnings (last 12 mos), $96.6 million; 5-Yr Earnings Growth, 14.2 per cent; Market Cap, $1.18 billion; Shares Outstanding, 26.86 million.
* Tardif’s View: “I believe the acquisition of Schwinn bicycles will boost their growth considerably. It should increase the earnings per share by about 50 per cent from ’03.
“They have a strong track record and high return on equity. With most stocks trading at high (price/earnings) multiples, it trades at one of the lowest multiples in the market.”
* Tardif’s Risk Rating: Medium.
* Web Watch: www.dorel.com

Tardif’s EDGE Record: +45.2 per cent. Best Pick: Eldorado Gold (ELD-TSX) +174.5 per cent. Worst Pick: High River Gold (HRG-TSX) -8.5 per cent.

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