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

FEATURED PRO: John Ing is president of Maison Placements Canada, an investment firm that emphasizes resource stocks. Ing was touting a gold bull market when the gold price was well below $300 US per ounce. The price has since skyrocketed and recently traded at $357, still well below his 2003 projected target of $500.

Ing’s Perspective: “I think what we’ve been seeing in the market lately has been a true dead-cat bounce. This is a bear market rally and the market is definitely not cheap. Have we not learned from the lessons of the past?

“This (bear market rally) is a reflection of excess liquidity in the market with interest rates near zero. The next move for interest rates has got to be up and that’s not good for the market. I think the rally will stall out soon and then we’ll retest the lows. The swamp is still draining. We still have tremendous debts (in the U.S.) and I’m still very bullish on gold with a forecast this year of $500 (US per ounce).”



FIRST STAR
* Kinross Gold (K-TSX)
* Recent Price: $9.32.
* 52-Week Range: $2.06-$12.08.
* Snapshot: Kinross, by virtue of its merger with TVX Gold and Echo Bay, has become the world’s seventh-largest gold producer with annual production approaching two million ounces.
* CEO: Brian Buchan.
* Head Office: Toronto (1,747 employees).
* Vital Stats: Revenue (last 12 mos), $467.6 million; 5-Yr Revenue Growth, 6.3%; Profit/Loss (last 12 mos), $50.7 million Loss; Market Cap, $2.89 billion; Shares Outstanding, 314.49 million.
* Ing’s View: “Kinross was able to buy out two medium-sized producers that faced mixed prospects, and it seems the word today (for gold companies) is
bigger is better in terms of market cap. They had the inevitable teething problems of merging three big
companies in the first quarter, but those are now behind them.
“The company has a balance sheet of about $50-odd million in cash, a market cap of $2.89 billion, 1.8 million ounces of annual production and, in my expectation of a $500 US (per ounce) gold price this year, it should do well. It hasn’t yet been afforded a senior (producer) valuation and, most importantly, those 1.8 million ounces (annual production) are unhedged, raising the prospects that down the road Kinross may itself be an acquisition prospect.”
* Ing’s Risk Rating: Low.
* Web watch: www.kinross.com



SECOND STAR
* Canadian Superior Energy (SNG-TSX)
* Recent Price: $1.42.
* 52-Week Range: $.97-$3.41.
* Snapshot: Canadian Superior is banking on a triple play based on potentially high-impact assets in the East Ladyfern natural gas field, the Drumheller shallow-gas field and offshore Nova Scotia.
* CEO: Greg Noval.
* Head Office: Calgary (48 employees).
* Vital Stats: Revenue (last 12 mos), $10.9 million; 5-Yr Revenue Growth, 91.9%; Profit/Loss (last 12 mos), $28.4 million Loss; Market Cap, $126.02 million; Shares Outstanding, 86.91 million.
* Ing’s View: “The advantage of this company is that they probably have three swings at the bat this year. They have the approximate $60-million acquisition of the Drumheller field which was a very timely purchase,
giving them cash flow in a prolific field to help finance their higher-risk exploration plays.
“What’s really exciting is that they’ll be the only junior company drilling off the east coast of Nova Scotia. The third swing at success will be their Ladyfern (Alberta) prospects, which they’ll be testing this winter.”
“Greg Noval (CEO) is very controversial in the oilpatch, but he swings for the fences and he’s an elephant hunter. But he does find elephants, which is what you want.”
* Ing’s Risk Rating: High.
* Web watch: www.cansup.com



THIRD STAR
* Cascades (CAS-TSX)
* Recent Price: $13.18.
* 52-Week Range: $11.56-$18.25.
* Snapshot: Cascades is a producer and marketer of packaging products such as boxboard, cartonboard, fine specialty paper and tissue paper with operations in Canada, U.S., Mexico, England, France, Sweden and Germany. The company recycles two million tons of paper annually.
* CEO: Laurent Lemaire.
* Head Office: Kingsey Falls, Que. (14,130 employees).
* Vital Stats: Current Price/Earnings Ratio, 8.1; Revenue (last 12 mos), $3.6 billion; 5-Yr Revenue Growth, 9.7%; Profit (last 12 mos), $169 million; 5-Yr Profit Growth, 22.9%; Market Cap, $1.06 billion; Shares Outstanding, 81.73 million; Dividend Yield, 1.236%.
* Ing’s View: “Cascades does not have as much negative exposure to the upswing in the Canadian dollar as other companies in this space because they’ve made acquisitions in the U.S. It has very conservative management and they’ve done a good job of growing by acquisition. We’re looking for $1.50
(earnings per share) this year.”
* Ing’s Risk Rating: Low.
* Web watch: www.cascades.com
* Ing’s Edge Record: +16.2%. Best Pick: Eldorado Gold (ELD-TSX) +242.4%. Worst Pick: Meridian Gold (MNG-TSX) -41.1%.
* Disclosure: Maison Placements has acted in financing for one of the featured companies, Canadian Superior. Ing says he does not personally hold positions in the stocks.