This is the first instalment of a new weekly investing round-up by Financial Edge columnist Gyle Konotopetz.

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Fred Pynn, senior vice-president/portfolio manager, Calgary-based Bissett Investment Management (www.franklintempleton.ca/bissett)

Pynn’s current strategy: “I think that a lot of the bad news is now priced into stocks. A lot of people are pessimistic and a lot of money is parked in money-market funds so that even though this is a time of stress and uncertainty, it’s also the time when you get the best opportunities to buy. You might want to look at selling stock in companies that have a lot of debt. You have to invest in quality. Stick with real companies with real businesses.”

First Star

* Saputo Inc. (SAP-TSE)

* Recent Price/Year Range: $43 ($30-$45.60).

* Snapshot: Saputo is a manufacturer of dairy and grocery products, noted primarily for its mozzarella cheese.

* CEO: Lino Saputo.

* Head Office: Saint-Leonard, Que. (7,800 employees).

* Vital Stats: Price/earnings Ratio: 17.8; Revenue (last 12 mos): $2.6 billion; Earnings (last 12 mos): $123.3 million; Market Cap: 2.2 billion; Shares Outstanding: 51.3 million; Dividend Yield: 0.8%; Five-Year Growth: no change.

* Pynn’s Comment: “Saputo is typically much more profitable than their competitors, they’re well diversified with operations in Canada and the U.S. and we would expect that they will continue to be active in the consolidation of the dairy industry in North America.”

* Risk Rating: Low.

* Web watch: www.saputo.com


Second Star

* CAE INC. (CAE-TSE)

* Recent Price/Year Range: $7.80 ($7.36-$15.45).

* Snapshot: CAE provides simulated and control technologies for training in aerospace, defence and forestry.

* CEO: Derek Burney.

* Head Office: Toronto (7,000 employees).

* Vital Stats: Price/earnings Ratio: 16.9; Revenue (last 12 mos): $1.2 billion; 5-yr Revenue Growth: 8%; Earnings (last 12 mos): $131 million; 5-yr Earnings Growth: 9.5%; Market Cap: $1.7 billion; Shares Outstanding: 216.4 million; Dividend Yield: 1.5%.

* Pynn’s Comment: “Obviously, this stock has come down an awful long way since Sept. 11 because they do sell a lot of product to airlines. But they also have a large business selling flight-simulation equipment to the military, which is about 40 per cent of their revenues. We think the stock is bargain priced, and we have been buying it.”

* Risk rating: high.

* Web watch: www.cae.com


Third Star

* Canadian National Railway (CNR-TSE)

* Recent Price/Year Range: $59.10 ($40.55-$71.35).

* Snapshot: CN operates a railway system in Canada and the U.S., generating revenue from the movement of forest products, automotive products, grain, coal, sulfur and fertilizer.

* CEO: Paul Tellier.

* Head office: Montreal (21,378 employees).

* Vital Stats: Price/earnings ratio: 18.4; Revenue (last 12 mos): $5.3 billion; 5-yr Revenue Growth: 5.4%; Earnings (last 12 mos): $646 million; 5-yr Earnings Growth: No Change; Market Cap: $11.4 billion, Shares Outstanding: 192.2 million; Dividend Yield: 1.3%.

* Pynn’s Comment: “There could be economic pressure on CN, but we think in six months to a year from now, the economy will be doing much better and CN will benefit from that. It’s very well managed, it’s profitable and they’ve recently closed on the purchase of Wisconsin Central Transportation. That gives them a direct line from Canada into the Chicago market. They have an advantage in both Canada and the U.S. because none of their competitors go coast to coast.”

* Risk rating: medium

* Web watch: www.cn.ca

* Disclosure: Pynn personally has a position in the Bissett Canadian Equity Fund, which holds these stocks but does not own the individual stocks. CNR is Bissett’s seventh largest holding overall, CAE is 14th and Saputo is 15th.