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

FEATURED PRO: Vancouver-based Rob Millham, a 15-year veteran of the securities industry, is the wireless technology analyst with Research Capital

Millham’s Outlook: “I do not expect the wireless sector to recover overall. I think there are some spotty success stories that share some common themes such as companies using new technology on old networks. That way, companies (that utilize old networks) are not sitting around and waiting for the new networks. Sure, there will be another bull market (in technology stocks). The next thing is going to be the mobile wireless Internet. Probably, two years from now, everyone will be talking about it.”

Millham cautions that the featured companies are not profitable and hence are high-risk investments for people with above-average risk tolerance.



FIRST STAR

* Wireless Matrix (WRX-TSE)

* Recent Price: $6.65.

* 12-Month Range: $1.10-$7.58.

* Millham’s Call: Buy. * 12-Month Target: $9.

* Snapshot: Wireless Matrix provides wireless data services for business-critical operations involving mobile workforces and remote assets.

* CEO: John Herring.

* Head Office: Calgary (130 employees).

* Vital Stats: Revenue (last 12 mos), $15 million; Profit/Loss, $33.4 million loss; Market Cap, $302.9 million; Shares Outstanding, 47.4 million.

* Millham’s Comment: “What I like is that they’re focused on the enterprise user and corporate user rather than you and I, the consumer, because there’s not a real business model or return on investment as a consumer application. I think they will be profitable towards the end of this (fiscal) year.”

* Risk Rating: High

* Web watch: www.wirelessmatrixcorp.com

SECOND STAR

* CSI Wireless (CSY-TSE)

* Recent Price: $2.50.

* 12-Month Range: $1.05-$3.97.

* Millham’s Call: Buy.

* 12-Month Target: $4.

* Snapshot: CSI provides wireless and high-accuracy GPS (global position system) products for mobile and fixed applications in commercial and consumer markets.

* CEO: Stephen Verhoeff.

* Head Office: Calgary (22 employees).

* Vital Stats: Revenue (last 12 mos), $40.4 million; Profit/Loss (last 12 mos), $9.2 million loss; Market Cap, $48.3 million; Shares Outstanding, 17.9 million.

* Millham’s Comment: “The GPS division is a mature technology, well established and they’re making some good money in it. That represents about 70 per cent of their revenues. They’re also involved in telematics which is about enabling vehicles with two-way communications and coupling that with GPS. But that is a very early market. I expect them to be profitable by the fourth quarter of this year. They’re still growing at a healthy rate despite the economic environment.”

* Risk Rating: High.

* Web watch: www.csi-wireless.com

THIRD STAR

* Versatile Mobile Systems (VMS-CDNX)

* Recent Price: 37 cents.

* 12-Month Range: $0.22-$1.05.

* Millham’s Call: Buy.

* 12-Month Target: $1.

* Snapshot: Versatile develops and markets mobile commerce software for use in the sales force automation industry.

* CEO: John Hardy. * Head Office: Vancouver.

* Vital Stats: Revenue (last 12 mos), $16.4 million; Profit/Loss (last 12 mos), $8.5 million loss; Market Cap, $29.4 million; Shares Outstanding, 77.3 million.

* Millham’s Comment: “I think this (technology) is fast growing, they have some good customers, like Schweppes Cadbury, and their business has a pretty strong return on investment. There is some pretty stiff competition in this field and they’re early in the development stage so this stock probably has the greatest risk of the three.”

* Risk Rating: High.

* Web watch: www.versatilemobile.com

* Disclosure: Millham says he personally owns all three stocks. Research Capital has acted in financing with Versatile Mobile Systems.