(Every week, Business Edge writer Gyle Konotopetz profiles the top three stock picks of some of Canada’s most successful investment pros.)
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Ross Healy, president, chief executive, Toronto-based Strategic Analysis Corp. The company provides research based on a theory of balance-sheet solvency.
Healy’s Current Strategy: (The candid Healy, one of few experts who warned about Nortel Networks when it was a high flyer last year, made his picks with some trepidation and chose the same companies as those featured in the Edge three months ago.)
“Two words: Extreme Caution. Too many questions, not enough answers. That’s how I see things. Honest to God, I don’t know what the outlook for the market is. Nobody can answer that question because there’s no answer for it. Some people have more confidence in their ability to forecast the unforecastable, but I would not include myself in that particular crowd.
“Be cautious until things are substantially more clarified, whenever the hell that’s going to be.
“If I knew the answer to that, I guess I’d be rich, wouldn’t I?” he says.
FIRST STAR
* Barrick Gold (ABX-TSE)
* Recent Price: $25.85.
* Year Range: $20.25-$29.65.
* Snapshot: Barrick is involved in the acquisition, exploration and development of precious-metals properties in North America, South America and Tanzania.
* CEO: Randall Oliphant.
* Head Office: Toronto (4,300 employees).
* Vital Stats: Current Price/Earnings Ratio (no profits); Revenue (last 12 mos), $2.0 billion; 5-yr Revenue Growth, 2.6%; Earnings/losses (last 12 mos), -$1.2 billion; Market Cap, $10.1 billion; Shares Outstanding, 396 million; Dividend Yield, 1.4 per cent.
* Healy’s Comment: “I would want to hold a gold stock and, as always, I will go for Barrick. Nothing else (in gold) except perhaps Franco Nevada has the liquidity of Barrick.”
* Risk Rating: Low.
* Web watch: www.barrick.com
SECOND STAR
* Husky Energy (HSE-TSE)
* Recent Price: $17.57.
* Year Range: $11.55-$20.95.
* Snapshot: Husky is an integrated energy company involved in exploration for and development of crude oil and natural gas.
* CEO: John Lau.
* Head Office: Calgary (811 employees).
* Vital Stats: Price/Earnings Ratio, 8.1; Revenue (last 12 mos), $6.7 billion; 5-yr Revenue Growth, -43%; Earnings (last 12 mos), $948.5 million; Market Cap, $7.3 billion; Shares Outstanding, 416.2 million; Dividend Yield, 2.0.
* Healy’s Comment: “It’s good value and I still think it’s going to be taken over (as has been speculated in recent months). I like it even if it isn’t taken over because it’s cheap.”
* Risk Rating: Low.
* Web watch: www.huskyenergy.ca
THIRD STAR
* Trilon Financial (TFC.A-TSE)
* Recent Price: $13.85.
* Year Range: $10.05-$14.48.
* Snapshot: Trilon is a Canadian financial services company that provides institutional and corporate clients with a broad range of financial, advisory and management services. Subsidiaries include Royal LePage, Trilon Securities, Trilon Bancorp and Trilon Capital Partners.
* CEO: George Myhal.
* Head Office: Toronto (1,800 employees).
* Vital Stats: Price/Earnings Ratio, 9.7; Revenue (last 12 mos), $431 million; 5-yr Revenue Growth, -40.2%; Earnings (last 12 mos), $251 million; 5-yr Earnings Growth, 15%; Market Cap, $2.1 billion; Shares Outstanding, 115.3 million; Dividend Yield, 4.6%.
* Healy’s Comment: “Good yield. Lots of upside. Cheap.”
* Risk Rating: Low.
* Web watch: www.trilon.ca
* Disclosure: Healy says he doesn’t own any of the stocks.






