(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, an investment firm that emphasizes value investing and capital preservation. In a perplexing bear market, Healy was somewhat reluctant to offer his top stock picks, stressing a defensive posture and joking that his top picks were “cash, cash and cash.”

Healy’s Perspective: “I’m sticking with the areas that offer the most value in this environment like the golds and oils. After that, it’s really hard to identify anything at all. I don’t really think you care what gold you own and, with a few exceptions, I don’t think you really care what oil (stocks) you own either. Gold is a potential hedge against disaster in the markets and it’s insurance. And you have to have insurance. These are not safe markets.”



FIRST STAR
* Barrick Gold (ABX-TSX)
* Recent Price: $27.33.
* 12-Month Range: $21.30-$36.05.
* Snapshot: Barrick is flexing its muscle in the gold world, recently announcing plans for a five-year,
$2-billion development of four new mines that it hopes will vault the company from the world’s No. 3 producer to No. 1. Barrick is Canada’s top gold producer with reserves in North America, South America and Tanzania.
* CEO: Randall Oliphant.
* Head Office: Toronto (4,685 employees).
* Vital Stats: Current Price/Earnings Ratio, 33.8; Revenue (last 12 mos), $2.5 billion; 5-Yr Revenue Growth, 4.2%; Profit (last 12 mos), $355.0 million; Market Cap, $14.81 billion; Shares Outstanding, 542.0 million; Dividend Yield, 1.27%.
* Healy’s Comment: “I just like the defensive qualities of gold and you can’t go wrong with this one. I spent a lot of time talking to the company (about their hedging on the price of gold) and I think the concerns by most
people are B.S. The concerns are overdone and overblown. It’s very safe.”
* Healy’s Risk Rating: Low-to-medium.
* Web watch: www.barrick.com



SECOND STAR
* Petro-Canada (PCA-TSX)
* Recent Price: $46.23.
* 12-Month Range: $33.90-$48.85.
* Snapshot: Petro-Canada’s exploration and production activities are focused in Canada with oil in East Coast offshore and natural gas and oilsands in Western Canada. Petro-Canada also operates three refineries and nearly 2,000 wholesale and retail outlets.
* CEO: Ron Brenneman.
* Head Office: Calgary (4,178 employees).
* Vital Stats: Current Price/Earnings Ratio, 19.6; Revenue (last 12 mos), $8.0 billion; 5-Yr Revenue Growth, 9.8%; Profit (last 12 mos), $629.0
million; 5-Yr Profit Growth, 34.7%; Market Cap, $12.14 billion; Shares Outstanding, 262.7 million; Dividend Yield, 0.86%.
* Healy’s Comment: “Simply put, PetroCanada is cheaper than the other two (of the largest) integrated oil stocks (Imperial Oil and Shell Canada) and there’s lots of upside here.”
* Healy’s Risk Rating: Low to medium.
* Web watch: www.petro-canada.ca



THIRD STAR
* Husky Energy (HSE-TSX)
* Recent Price: $15.70.
* 12-Month Range: $14-$20.95.
* Snapshot: Husky is an energy company with upstream activities in Western Canada, offshore East Coast and China. Its marketing network
comprises 580 outlets and the company also wholesales fuels and asphalt in Canada and the U.S.
* CEO: John Lau.
* Head Office: Calgary (811 employees).
* Vital Stats: Current Price/Earnings Ratio, 11.7; Revenue (last 12 mos), $6.1 billion; 5-Yr Revenue Growth, 55.9%; Profit (last 12 mos), $594.0
million; Market Cap, $6.55 billion; Shares Outstanding, 417.5 million; Dividend Yield, 2.29%.
* Healy’s Comment: “The stock is cheap and it’s held up beautifully for the past year so I think it has good upside.”
* Risk Rating: Low to medium.
* Web watch: www.huskyenergy.ca
* Healy’s Edge Record (seven buy recommendations since Nov. 8): +7.7%. Best Pick: Newmont Mining +38%; Worst Pick: Husky Energy -16%.
* Disclosure: Healy says he may hold positions indirectly in the featured stocks through mutual funds.