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

FEATURED PRO: Martin Ferguson is a partner with Calgary-based Mawer Investment Management (www.mawer.com) where he manages the Mawer New Canada Fund. He is also part of the management team for the Mawer Canadian Equity Fund.

Fund Form: The Mawer New Canada Fund has a one-year return of 31.8 per cent compared to the group average of 22.6 per cent and a three-year annualized return of 23.1 per cent compared to the group average of 10.9 per cent.

Management Expense Ratio: 1.46 per cent.

Martin Ferguson

Ferguson’s Perspective: “Longer term, I believe the market will not see the same kind of double-digit returns it saw in the 1990s. Short term, it’s anybody’s call. I don’t have a crystal ball. Stocks appear to be close to fair valuations. I don’t see a lot of very cheap stocks.”

FIRST STAR

* Esprit Energy (EEE-TSX)

* Recent Price: $3.58.

* 52-Week Range: $2.35-$3.72.

* Snapshot: Esprit is an oil and gas company focused almost exclusively on natural gas on the western side of the Western Canadian Sedimentary Basin. The company is in the process of converting into a royalty trust and spinning off a separate exploration company to be known as ProspEx.

* CEO: Steve Savidant.

* Head Office: Calgary (36 employees).

* Vital Stats: Current Price/Earnings Ratio, 14.9; Revenue (last 12 mos), $138.4 million; 5-Yr Revenue Growth, five per cent; Earnings (last 12 mos), $31.7 million; Market Cap, $573.27 million; Shares Outstanding, 160.13 million.

Ferguson’s View: “Steve Savidant is a manager who we’ve invested with previously when he was with Canadian Hunter (now defunct) and we did quite well then. He’ll be the manager of the energy trust side of this business and shareholders will also get shares in ProspEx (in the reorganization).”

* Ferguson’s Risk Rating: Medium.

* Web Watch: www.eee.ca

SECOND STAR

* VFC Corp. (VFC-TSX)

* Recent Price: $7.70.

* 52-Week Range: $7.25-$12.25.

* Snapshot: VFC is a specialty finance company that specializes in vehicle installment contracts, originating through a network of franchised and independent automobile dealerships.

* CEO: Charlie Stewart.

* Head Office: Toronto.

* Vital Stats: Current Price/Earnings Ratio, 11.0; Revenue (last 12 mos), $29.1 million; Earnings (last 12 mos), $7.2 million; Market Cap, $115.15 million; Shares Outstanding, 14.95 million.

* Ferguson’s View: “This company has an excellent management team led by Charlie Stewart. However, they stumbled in the last quarter, disappointing the Street, and the stock has dropped from around $12 to the $8 range. Part of the problem has been the result of growing pains of a new public company learning how to talk to the Street analysts.

“However, we believe the business model to be intact and this should be a good franchise with good profitability going forward.”

* Ferguson’s Risk Rating: High.

* Web Watch: www.vfc.ca

THIRD STAR

* Contrans Income Trust (CSS.UN-TSX)

* Recent Price: $13.

* 52-Week Range: $8.26-$13.10.

* Snapshot: Contrans is a truckload transportation services company with operations throughout Canada and the U.S. and also operates school bus services in Ontario.

* CEO: Stanley Dunford.

* Head Office: Woodstock, Ont.

* Vital Stats: Monthly Cash Distribution, 10.42 cents per unit; Revenue (last 12 mos), $315.8 million; 5-Yr Revenue Growth, -1.5 per cent; Earnings (last 12 mos), $21.5 million; 5-Yr Earnings Growth, 5.3 per cent; Market Cap, $36.15 million; Shares Outstanding, 27.70 million.

* Ferguson’s View: “This company has excellent management and we like the business model, which is a little different from most trucking companies. They do not own their own trucks for the most part, but use owner- operators. They’ve been very good at securing and maintaining long-term relationships with larger customers. The yield is close to 10 per cent and I think that’s sustainable. I believe the management can continue to add value via acquisitions as it has done throughout its life.

“This company did feel the pinch in 2003 when we had SARS, the border closing, the Canadian dollar running up, and insurance rates and fuel costs going through the roof. At that point, the company was considering cutting its distribution, but they’ve since turned things around. They’ve strengthened the balance sheet and are able to weather a downturn.”

* Ferguson’s Risk Rating: Medium.

* Web Watch: www.contrans.ca

Ferguson’s Edge Record (last 12 mos): +14.3 per cent. Best Pick: Transat (TRZ-TSX) +49.5 per cent. Worst Pick: ShawCor (SCL.A-TSX) -27.7 per cent.

Disclosure: Mawer partners are restricted from owning shares in stocks in the company’s funds, but may own shares in the funds in which they are held.