(Business Edge writer David Hatton profiles the top stock picks of some of Canada's most accomplished investment pros.)
FEATURED PRO: Keith Leslie is vice-president, partner and portfolio manager with Hesperian Capital Management (www.hesperiancapital.com).
The six-year veteran of the firm manages the Norrep Q fund and is a co-manager of the Norrep Income Growth Fund. Calgary-based Hesperian manages the Norrep series of funds.
Fund form: As of Oct. 31, 2007, the Norrep Q fund has a year-to-date return of 18.05 per cent and a three-year annualized return of 26.57 per cent.
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| Keith Leslie |
Management Expense Ratio: Two per cent Leslie's Perspective: "As a quantitative analyst, I'm more concerned about the numbers a company is producing rather than who is sitting on their management team.
"We look for stocks at a good momentum that are reasonably priced. That's the key. I will also look at the trailing averages more than others, because that tells me more of a story. Generally one good quarter will put a company on my watch list.
But we wait for two good quarters and what trends there are before trying to buy it before the herd (other analysts)."
First Star
* Thompson Creek Metals (TSX:TCM)
* Recent Price: $23.98
* 52-Week Range: $24.15-$6.75 (10/29-11/17)
* Snapshot: Thompson Creek Metals Company Inc. is the fifth-largest producer in the world of molybdenum, a metal known for its ability to resist corrosion and withstand intense amounts of heat. These properties make it attractive in manufacturing everything from aircraft parts to industrial motors.
The company also owns the Thompson Creek open-pit molybdenum mine and mill in Idaho, 75 per cent of the Endako open-pit mine, mill and roasting facility in northern British Columbia, and a metallurgical roasting facility in Langeloth, Pa. It is developing a high-grade molybdenum deposit near Smithers, B.C.
* CEO: Kevin Loughrey
* Head Office: Toronto
* Vital Stats: Price/Earnings Ratio (ttm), 26.40; Revenue (last fiscal year), US$150.8 million; Earnings Per Share (ttm), 0.93; Market Cap, $2.7 million.
* Leslie's View: "The company is currently trading at 14 times trailing earnings and has a 78-per-cent return on equity. If you look at the last three quarters it shows there is definite potential.
They have a product with consistent demand and the company has managed its balance sheet well. I am definitely keeping an eye on them right now."
* Leslie's Risk Rating: High
* Web Watch: www.thompsoncreekmetals.com
Second Star
* Neo Material Technologies (TSX:NEM)
* Recent Price: $5.39
* 52-Week Range: $5.60-$1.80 (10/29-11/06)
* Snapshot: Neo Material Technologies Inc. is a producer, processor and developer of Neo powders, rare earths, and zirconium-based engineered materials and applications through its Magnaquench and Performance Materials business divisions.
* CEO: Constantine Karayannopolous
* Head Office: Toronto
* Vital Stats: Price/Earnings Ratio (ttm), 12.80; Revenue (last fiscal year), $27.8 million; Earnings Per Share (ttm), 0.42; Market Cap, $431 million.
* Leslie's View: "This is a company that separates rare earths to help create powerful magnets. The stock is not expensive and meeting analysts' expectations every quarter. The perfect world is to find a good stock like this that no analysts are covering. A few of them have already found it though and more will likely come onboard over the next year or so."
* Leslie's Risk Rating: Medium
* Web Watch: www.amr-ltd.com
Third Star
* Open Text (TSX:OTC)
* Recent Price: $32.63
* 52-Week Range: $34.30-$18.65 (08/09-11/02)
* Snapshot: Open Text Corp. is a Waterloo-based provider of enterprise content management soft-ware. The company says it supports around 46,000 customers in 114 countries and 12 languages.
* Vital Stats: Price/Earnings Ratio, 69.40; Revenue (last fiscal year), $595.7 Million; Earnings Per Share, 0.47; Market Cap, $1.7 billion.
* CEO: John Shackleton
* Head Office: Waterloo
* Leslie's View: "A little bit more pricey but (trading at) 17.8 per cent (times) earnings for a 17-per-cent return on equity. One of their more interesting software applications is a webcast right on your desktop that operates similar to conference calls. Some of their peers in the U.S. are putting out higher numbers with their stock trading at a higher multiple, so I believe there is potential here."
* Leslie's Risk Rating: Medium
* Web Watch: www.opentext.com
NOTE: This feature is provided for informational purposes. Investors are advised to do their own research or consult a qualified investment professional before making investment decisions.
(David Hatton can be reached at hatton@businessedge.ca)







