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

FEATURED PRO: Jean-Francois Tardif is a portfolio manager with Sprott Asset Management (www.sprott.ca). The independent firm manages three funds, all of which are among the hottest in Canada. Tardif is part of the team that manages the Sprott Canadian Equity Fund, up 74.4 per cent in the past 12 months (through May 31); the Sprott Precious Metals Fund, up 134 per cent since its inception last November; and the Sprott Hedge Fund, up 112.6 per cent in the past 12 months.

Tardif’s Perspective: “We’re very, very, very bearish, probably one of the most bearish investment companies in Canada. We believe we’ve been through a bubble which nobody can deny now. We believe that there will be a lot of problems coming out of that bubble. From the peak in the market in 2000 (March), the bear market could easily last four years. We believe stocks are still very expensive with very high (price-to-earnings) multiples.

“Basically, we’re staying away from anything that does great in a good economy and does badly in a bad economy. So we’re very bullish on gold and we think it (spot price) will more than double. There’s a huge shortage of supply relative to demand and, as demand for gold increases as a financial asset, there will be a much greater shortage. If there’s a major problem in the world in six months, maybe gold goes to $900.”



FIRST STAR
* Kinross Gold (K-TSX)
* Recent Price: $3.51. * 12-Month Range: $1.26-$6.74.
* Snapshot: Kinross recently became a Top 10 player in the global gold market with its yet-to-be-completed acquisition of Echo Bay Gold and TVX Gold. Kinross’s production is centred around three primary mines – in Alaska, Ontario and Russia.
* CEO: Robert Buchan.
* Head Office: Toronto (2,691 employees).
* Vital Stats: Revenue (last 12 mos), $430 million; Profit/Loss (last 12 mos), $58.7 million loss; Market Cap, $1.3 billion; Shares Outstanding, 334.7 million.
* Tardif’s Comment: “We like Kinross now because they’re becoming a big player (with the acquisition of Echo Bay and TVX) and the company is unhedged. If gold goes up in a big way, Kinross will do better than companies that are hedged. It also trades at a discount to other large-cap gold equities, relative to their production and the upside of gold.”
* Tardif’s Risk Rating: Medium-to-High.
* Web watch: www.kinross.com



SECOND STAR
* Richmont Mining (RIC-TSX)
* Recent Price: $5.25.
* 12-Month Range: $1.26-$6.74.
* Snapshot: Richmont is a gold producer with mining operations in Quebec and Newfoundland.
* CEO: Jean-Guy Rivard.
* Head Office: Rouyn-Noranda, Que. (183 employees).
* Vital Stats: Price/Earnings Ratio, 37.0; Revenue (last 12 mos), $34.1 million; 5-Yr Revenue Growth, 5.6%; Profit (last 12 mos), $1.9 million; Market Cap, $79.1 million; Shares Outstanding, 15.1 million.
* Tardif’s Comment: “We own a substantial portion of this company. They will have a lot of earnings in the next few quarters. I’ve seen some forecasts for next year of 80 cents (earnings per share) based on the current gold price. If the gold price goes up, the earnings will be higher and the stock could easily double.”
* Tardif’s Risk Rating: Medium- to-High.
* Web watch: www.richmont-mines.com



THIRD STAR
* CCS Income Trust, formerly Canadian Crude Separators, (CCR.UN-TSX)
* Recent Price: $16.
* 12-Month Range: $5.30-$16.28.
* Snapshot: CCS Income Trust is the recent reorganization of Canadian Crude Separators into an income trust. The company’s initial distribution to shareholders on July 15 will be 18 cents per share. The oilfield treatment, recovery and disposal business is comprised of two divisions, Concord Well Services and CCS Energy Services.
* CEO: David Werklund.
* Head Office: Calgary (235 employees).
* Vital Stats: Price/Earnings Ratio, 13.1; Revenue (last 12 mos), $111 million; Profit (last 12 mos), $20.6 million; Market Cap, $210.2 million; Shares Outstanding, 13.3 million.
* Tardif’s Comment: “We like some unit trusts because they’ve got a yield which gives investors some protection. Canadian Crude has a very good distribution and we believe they may increase it every quarter. It’s a very well-managed company and it’s still growing. We also believe with all the problems in the world, oil (prices) should be OK.”
* Tardif’s Risk Rating: Medium-to-High.
* Web watch: www.cdncrude.com
* Disclosure: Tardif says he owns the Sprott funds in which the featured stocks are held, but does not own the individual stocks.