(Every week, Business Edge columnist Gyle Konotopetz profiles the top three stock picks of one of Canada’s most accomplished investment pros.)

FEATURED PRO: Peter Ogden is vice-president of research and industrial analyst at Lightyear Capital (www.lightyearcapital.com).

Lightyear is an independent investment boutique based in Calgary.Ogden has been with Lightyear for the past two years and previously worked as an engineer in Canada and Australia with PanCanadian Energy (since merged with Alberta Energy to become EnCana), Santos Oil and Gas and Northrock Resources.

Ogden’s Perspective: “Lightyear’s strategy has . . . been one of stock picking. I think it’s a tough market in which to buy a sector and expect it to go up 15 per cent or whatever.

“We’re seeing some value in oil and gas, an area that we began coverage of on Jan. 1. I think some of the
(natural) gas stories have run up a bit too high, but I expect that toward the end of this quarter, there should be some value in oil and gas stocks. For example, I could buy Nexen (NXY-TSX) for $33 a year ago and I could still buy it for $33.”



FIRST STAR
* Contrans Income Fund (CSS.UN-TSX)
* Recent Price: $8.99.
* 52-Week Range: $8.23-$10.60.
* Lightyear’s Call: Strong buy.
* 12-Month Target: $12.50.
* Snapshot: Contrans just keeps on truckin’ – and busin.’ The trucking company recently tapped into the school busing market to add to its fleet of 1,200 tractors and 1,900 trailers in operation, predominantly in Eastern Canada.
* CEO: Stan Dunford.
* Head Office: Woodstock, Ont. (900 employees).
* Vital Stats: Revenue (last 12 mos), $223.6 million; 5-Yr Revenue Growth, 13.4%; Profit (last 12 mos), $13.2 million; 5-Yr Profit Growth, 18%; Market Cap, $147.94 million; Shares Outstanding, 16.46 million.
* Ogden’s View: “Contrans is a well- operated transportation company that has been able to smooth out its earnings with a foray into the school bus market. They’ve hired an ex-M&A (mergers and acquisitions) manager and they’ll continue to look for acquisitions in the trucking and school bus market.
“With a 13.9-per-cent yield, the company has minimal downside, a $1.25 distribution (rate) and a steady business for continuing to pay distributions.”
* Lightyear’s Risk Rating: Medium.
* Web watch: www.contrans.ca



SECOND STAR
* Flint Energy Services (FES-TSX)
* Recent Price: $21.
* 52-Week Range: $18.75-$27.75.
* Lightyear’s Call: Strong buy.
* 12-Month Target: $32.
* Snapshot: Flint is a fully integrated North American midstream production services provider to the energy and resources industries, operating 49 regional facilities in Western Canada and strategic service locations in the Midwestern U.S.
* CEO: Brian Butlin.
* Head Office: Calgary (4,500 employees).
* Vital Stats: Current Price/Earnings Ratio, 11.1; Revenue (last 12 mos), $998.3 million; Profit (last 12 mos), $42.7 million; Market Cap, $342.47 million; Shares Outstanding, 16.31 million.
* Ogden’s View: “Flint is the gorilla of oilfield construction in Western Canada. The company already derives 50 per cent of its revenue from production operations and will benefit when (drilling) activity picks up because they’re involved in every aspect of bringing a well to production.
“They also trade at a discount to other large and more cyclical companies in the oilpatch. They’re about a $21 stock with a market cap of $300 million plus and yet they trade at 10 times earnings. To me, that’s incredible.”
* Lightyear’s Risk Rating: Medium.
* Web watch: www.flint-energy.com



THIRD STAR
* Tusk Energy (TKE-TSX)
* Recent Price: $2.70.
* 52-Week Range: $0.90-$3.18.
* Lightyear’s Call: Strong buy.
* 12-Month Target: $4.
* Snapshot: Tusk is a junior oil and gas producer currently producing more than 2,400 barrels of oil equivalent (boe) per day from operations in central Alberta and Saskatchewan. The company has had about a 50-50 balance between oil and natural gas production but, for the first quarter of ’03, the company’s natural gas weighting is expected to increase to about 60 per cent. Tusk recently completed a takeover of Del Roca Energy.
* CEO: Norman Holton.
* Head Office: Calgary.
* Vital stats: Current Price/Earnings Ratio, 18.0; Revenue (last 12 mos), $14.1 million; 5-Yr Revenue Growth, 23.5%; Profit (last 12 mos), $2.4 million; Market Cap, $48.65 million; Shares Outstanding, 18.02 million.
* Ogden’s View: “Tusk is expected to exit the first quarter of ’03 with over 4,000 boe per day and the bulk of the increase is natural gas. They have strong baseline production and prospects and, with expected strong (natural gas) prices going forward, we expect Tusk to outperform.”
* Lightyear’s Risk Rating: High.
* Web watch: www.tusk-energy.com
* Disclosure: Ogden says he personally owns shares in Contrans Income Fund.