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

FEATURED PRO: Ross Healy has been CEO of Strategic Analysis Corp. (www.strategicanalysis.ca) since 1989 and the 38-year veteran of the investment industry manages the Accumulus Talisman Fund, which was launched in February.

Fund Form: The Accumulus Talisman Fund is approximately even.

Management Expense Ratio: 1.95 per cent (plus 20 per cent of the amount it outperforms the S&P/TSX 60 Index.

Ross Healy

Healy’s Perspective: “I’m very cautious about this market and for that reason I continue to hold about 65 per cent cash. I continue to favour the oil and gas stocks. The oil stocks haven’t done particularly well compared to the price of oil, but I believe that the stocks will eventually reflect the high oil price.”

First Star

* Canadian Natural Resources (CNQ-TSX).

* Recent Price: $43.84.

* 52-Week Range: $25.74-$45.45 (includes adjustments to factor in 2-for-1 stock split).

* Snapshot: Canadian Natural is a senior oil and gas company with a diverse range of properties in Western Canada, the North Sea and offshore West Africa.

* President: John Langille.

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

* Vital Stats: Current Price/Earnings Ratio, 11.7; Revenue (last 12 mos), $5.6 billion; 5-Yr Revenue Growth, 35.1 per cent; Earnings (last 12 mos), $975 million; 5-Yr Earnings Growth, 38.6 per cent; Market Cap, $11.75 billion; Shares Outstanding, 267.91 million; Dividend Yield, 0.90 per cent.

* Healy’s View: “This stock is quite cheap. It’s the cheapest of almost all of the oil stocks in terms of price-to-book terms and the book is growing very fast. Besides the fact that they’re very profitable, I like the fact that the stock has a lot of upside. They’ve got a nice balance of oil and natural gas. They’re good operators that keep on getting good results.

“If you compare CNQ to Suncor (SU-TSX), an oil and gas stock that also is very good at what they do, the big, fat difference is that CNQ sells at about 1.6 times book (value) while Suncor sells at about four times book (value).

* Healy’s Risk Rating: Low.

* Web Watch: www.cnrl.com

Second Star

* Hudson’s Bay Co., Convertible Debentures (HBC.DB.A-TSX. Common shares trade under HBC-TSX, recent price, $13.55).

* Recent Price (debentures): $104.75.

* 52-Week Range: $91.55-$109.99.

* Snapshot: Hudson Bay Co., is Canada’s largest department retailer and oldest corporation, featuring 550 stores, mainly under the banners of The Bay, Zellers and Home Outfitters. The company has $209.5 million worth of 7.5-per-cent unsecured convertible subordinated debentures outstanding with a maturity date of Dec. 1, 2008.

* CEO: George Heller.

* Head Office: Toronto (70,889 employees).

* Vital Stats: Current Price/Earnings Ratio, 13.2; Revenue (last 12 mos), $7.4 billion; 5-Yr Revenue Growth, 0.6 per cent; Earnings (last 12 mos), $84.6 million; 5-Yr Earnings Growth, 2.1 per cent; Market Cap, $939.59 million; Shares Outstanding, 69.34 million.

* Healy’s View: “There are two reasons that I like the Bay convertible debentures. Firstly, our own credit-rating methodology system tells me that this is a comfortable A rating in terms of credit quality. It’s rated (officially) a Triple-B, but I think they are understating it. As a single-A piece of paper, it yields maturity, giving me about a 61/2-per-cent yield for four years. It’s tough like heck to find that kind of a yield.

“Secondly, and this is the real kicker, if somebody such as Target takes a run at this company and acquires it (as has been rumoured), I also have a good potential capital gain. I also like the Bay stock (common shares), but I think it’s safer to own the convertible debentures.”

* Healy’s Risk Rating: Low.

* Web Watch: www.hbc.com

Third Star

* Teck Cominco (TEK.B-TSX)

* Recent Price: $26.40.

* 52-Week Range: $13.80-$26.50.

* Snapshot: Teck is a diversified mining and refining company and world leader in production of metallurgical coal and zinc, in addition to being a major producer of copper and gold. The company was formed in 1906 through the amalgamation of several units controlled by Canadian Pacific Railway.

* CEO: David Thompson.

* Head Office: Vancouver.

* Vital Stats: Current Price/Earnings Ratio, 15; Revenue (last 12 mos), $2.9 billion; 5-Yr Revenue Growth, 33.8 per cent; Earnings (last 12 mos), $338 million; Market Cap, 5.08 billion; Shares Outstanding, 192.44 million; Dividend Yield, 0.80 per cent.

* Healy’s View: “This stock has a lot of upside based on its large exposure to lead, zinc, copper and other metals. I think that in a world where China and India are emerging as industrial powers, there’s going to be a fair bit of pressure on resource pricing, meaning that companies such as this will remain fairly profitable. From an upside potential point of view, if you use analysts’ forecasts, the potential for the metals is greater than the potential even for oil, which is second (according to forecasts).

“I also like the fact that Teck has some exposure to bullion – just in case. I’m not hideously bullish on bullion, but I can see circumstances in which it (gold exposure) might work out very, very well.”

* Healy’s Risk Rating: Medium.

* Web Watch: www.teckcominco.com Healy’s Edge Record (past 12 mos): +11.1 per cent. Best Pick: Teck (TEK.B-TSX) +29.9 per cent. Worst Pick: EnCana (ECA-TSX) -0.7 per cent.

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