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

FEATURED PRO: Martin Ferguson is a partner and portfolio manager with Mawer Investment Management. He manages the small-cap Mawer New Canada Fund. Fund Form: The New Canada Fund’s three-year annual return is 23.5 per cent compared to the group average of 4.67 per cent and its one-year return is 24.1 per cent compared to the group average of 27.9 per cent. Management Expense Ratio (MER): 1.59 per cent.

Ferguson’s Perspective: “I believe the stock market is discounting a lot of the good economic growth that we’ve seen so, in my mind, a lot of the good news is already in the market. It has been tougher to find value across the board as valuations have increased, but I find value in individual stocks rather than sectors.”



FIRST STAR
* Global Railway Industries (GBI-TSX)
* Recent Price: $3.95.
* 52-Week Range:
$1.85-$4.05.
* Snapshot: Global Railway provides restructuring and recapitalizing services to railway suppliers. Its subsidiaries supply hydraulic-controlled rail gear, event recorders and railcar doors.
* CEO: Mike Kohut.
* Head Office: Calgary (193 employees).
* Vital Stats: Current Price/Earnings Ratio, 15.6; Revenue (last 12 mo.), $22.8 million; Earnings (last 12 mo.), $2.3 million; Market Cap, $39.98 million; Shares Outstanding, 10.12 million.
* Ferguson’s View: “This is a reasonably priced company in a very good niche position. They’ve been growing through acquisition and they have strong competitive positions in each of their niches.”
* Ferguson’s Risk Rating: Medium (relative to small caps).
* Web Watch: www.globalrailway.com



SECOND STAR
* Exco Technologies (XTC-TSX)
* Recent Price: $5.85.
* 52-Week Range: $5.71-$7.63.
* Snapshot: Exco is a global supplier of innovative
technologies for the die-cast, extrusion and automobile industries.
* CEO: Brian Robbins.
* Head Office: Markham, Ont. (1,950 employees).
* Vital Stats: Current Price/Earnings Ratio, 7.2; Revenue (last 12 mo.), $226 million; 5-Yr Revenue Growth, 15.7%; Earnings (last 12 mo.), $17.5 million; 5-Yr Earnings Growth, 9.1%; Market Cap, $234.80 million; Shares Outstanding, 40.14 million.
* Ferguson’s View: “They have a history of very high returns in their capital and they’ve gone through an acquisition spree. It remains a well-run company and there is potential for growth as the Big Three (automakers) go through model changeovers and introduce new transmissions. Exco would stand to be a recipient of a lot of those new transmissions. The stock remains reasonably priced.”
* Ferguson’s Risk Rating: Low.
* Web Watch: www.excocorp.com



THIRD STAR
* Speedware Corp. (SPW-TSX)
* Recent Price: $2.65.
* 52-Week Range: $1.12-$2.79.
* Snapshot: Speedware is a software company that develops and markets a line of application development software tools and business intelligence for the mid-range and personal computer platforms.
* CEO: Jean-Pierre Theoret.
* Head Office: St. Laurent, Que. (190 employees).
* Vital Stats: Current Price/Earnings Ratio, 11.4; Revenue (last 12 mo.), $18.8 million; 5-Yr Revenue Growth, -9.9%; Earnings (last 12 mo.), $4.3 million; Market Cap, $78.87 million; Shares Outstanding, 29.76 million.
* Ferguson’s View: “This company has excellent management, a very good business model and good cost controls. The upside for the company would be via acquisitions.”
* Ferguson’s Risk Rating: Medium.
* Web Watch: www.speedware.com

Ferguson’s Edge Record: +33.9%. Best Pick: CCS Income Trust (CCR.UN-TSX) +200.7%. Worst Pick: Impact Energy (IEY-TSX) -10.5%.

Disclosure: Mawer partners are restricted from owning individual stocks that are held in their funds but may own shares in the funds.