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

Ross Healy

FEATURED PRO: Ross Healy, a 38-year veteran of the investment industry, has been CEO of Strategic Analysis Corp. (www.strategicanalysis.ca) since 1989. Prior to that, he was director of research for Merrill Lynch Canada. Healy is portfolio manager of the Accumulus Talisman Fund, a long/short fund that was launched in February. Management expense ratio (MER): 1.95 per cent plus 20 per cent of the amount it outperforms the S&P/TSX 60 index.

Healy’s Perspective: Healy continues to recommend to clients that they hold a substantial amount of cash in the current market environment and recently had an approximate 70-per-cent cash position in the Accumulus Talisman Fund.

“I don’t like this market and I’m dithering,” says Healy. “I’m not optimistic at all. I think (U.S.) interest rates will be rising after the U.S. election and interest sensitives (stocks) look toppy. This market needs a correction so it has the technical strength to move on. I think that can happen fairly soon once earnings season is over and we’re into a period in May and June when there isn’t a lot happening.

“If interest rates reflected real inflation, there could be a lot of downside in this market.”



FIRST STAR

* Microsoft Corp. (MSFT-Nasdaq)

* Recent Price: $26.35 US.

* 52-Week Range: $23.60-$30.

* Snapshot: Microsoft develops, manufactures and licenses software products used in a vast range of computer devices.

* CEO: Steve Ballmer.

* Head Office: Redmond, Wash. (55,000 employees).

* Vital Stats (U.S. Dollars): Current Price/Earnings Ratio, 38.4; Revenue (last 12 mos), $34.3 billion; 5-Yr Revenue Growth, 12.7 per cent; Earnings (last 12 mos), $8.9 billion; 5-Yr Earnings Growth, 4.4 per cent; Market Cap, $284.43 billion; Shares Outstanding, 10.79 billion; Dividend Yield, 0.60 per cent.

* Healy’s View: “Microsoft is a sumo wrestler. It has a very big, fat balance sheet with a lot of cash on it. That gives investors protection against downside and also some upside potential.”

* Healy’s Risk Rating: Medium.

* Web Watch: www.microsoft.com



SECOND STAR

* Canadian Natural Resources (CNQ-TSX)

* Recent Price: $77.47.

* 52-Week Range: $48.85-$81.65.

* Snapshot: Canadian Natural is a senior oil and gas company with properties in Western Canada, the North Sea and offshore West Africa. The company recently invested $280 million on properties in northwestern Alberta and northeastern B.C.

* President: John Langille.

* Head Office: Calgary (1,186 employees).

* Vital Stats: Current Price/Earnings Ratio, 7.4; Revenue (last 12 mos), $5.1 billion; 5-Yr Revenue Growth, 42.4 per cent; Earnings (last 12 mos), $1.4 billion; 5-Yr Earnings Growth, 60 per cent; Market Cap, $10.39 billion; Shares Outstanding, 134.14 million; Dividend Yield, one per cent.

* Healy’s View: “CNQ has always been a good operator. Although some analysts have been forecasting that earnings are going to fall out of bed, they just keep on trucking.

In our terms, which are price-to-book terms, the stock is probably the cheapest of the oil stocks.”

* Healy’s Risk Rating: Medium.

* Web Watch: www.cnrl.com

THIRD STAR



* EnCana Corporation (ECA-TSX)

* Recent Price: $55.51.

* 52-Week Range:

$44.60-$59.73.

* Snapshot: EnCana is a global oil and gas company. Besides its extensive exploration and production properties, EnCana operates natural gas storage facilities, transportation of oil via pipeline and natural gas liquids processing.

* CEO: Gwyn Morgan.

* Head Office: Calgary (3,854 employees).

* Vital Stats: Current Price/Earnings Ratio, 10.0; Revenue (last 12 mos), $13.3 billion; Earnings (last 12 mos), $2.3 billion; Market Cap, $26.22 billion; Shares Outstanding, 472.32 million.

* Healy’s View: “EnCana has been buying reserves and ensuring that it will have a lot of reserves in the future.

That makes it an interesting company long term and gives them a lot of longevity.”

* Healy’s Risk Rating: Medium.

* Web Watch: www.encana.com

Healy’s EDGE Record: +35.1 per cent. Best Pick: Canadian Natural Resources (CNQ-TSX) +87.1 per cent. Worst Pick: Barrick Gold (ABX-TSX) minus four per cent.

Disclosure: The featured stocks are held in the Accumulus Talisman Fund. Healy owns shares in the fund.