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

FEATURED PRO: Josef Schachter is president of Calgary-based Schachter Asset Management. His firm works in an advisory role capacity and does not deal directly with the public.

Schachter’s 2003 Outlook: TSX Composite 8,500 (recently 6,637), Dow Jones 11,000 or higher (recently 8,538).

“I’m bullish on the market because it has a lot going for it – extremely low interest rates, very generous money supply in the U.S. and new change of leadership in the U.S. economic system.”



FIRST STAR
* BelAir Energy (BEC-TSX)
* Recent Price: $.90.
* 12-Month Range: $.72-$2.30.
* Schachter’s 12-Month Target: $1.50.
* Snapshot: BelAir is an oil and gas company with operations in Alberta and northeastern B.C. and an 80-per-cent weighting towards natural gas.
* CEO: Victor Luhowy.
* Head Office: Calgary.
* Vital Stats: Revenue (last 12 mos), $22.3 million; Profit/Loss (last 12 mos), $26.2 million loss; Market Cap, $28.84 million; Shares Outstanding, 32.04 million.
* Schachter’s Comment: “Heading into the end of the year, BelAir has a very active (exploration) program with about $10 million being spent, and they have some very interesting projects, including one next to the Ladyfern project with Nexen as the operator.”
* Schachter’s Risk Rating: High.
* Web watch: www.belairenergy.com




SECOND STAR
* Defiant Energy (DEF-TSX)
* Recent Price: $1.60.
* 12-Month Range: $1.00-$2.00.
* Schachter’s 12-Month Target: $2.00.
* Snapshot: Defiant is a natural gas-oriented junior production, development and exploration company focused on Alberta properties.
* CEO: David Evans.
* Head Office: Calgary (12 employees).
* Vital Stats: Current Price/Earnings Ratio, 53.3; Revenue (last 12 mos), $9.7 million; Profit (last 12 mos), $700,000; Market Cap, $33.15 million; Shares Outstanding, 20.72 million.
* Schachter’s Comment: “The management has a good track record with David Evans (formerly of Barrington Petroleum) and Tim Dunn. They’re currently producing about 1,700 to 1,800 (barrels of oil equivalent) per day and should average about 3,000 (boe) next year.”
* Risk Rating: Medium.
* Web watch: www.defiantenergy.com




Nortel Networks
* Nortel Networks (NT-TSX)
* Recent Price: $2.83.
* 12-Month Range: $.67-$13.99.
* Schachter’s 12-Month Target: $5.
* Snapshot: Nortel is one of the largest providers of
technologies for Internet, telecommunications and
fibreoptics utilized in wireless and metro networks.
* CEO: Frank Dunn.
* Head Office: Brampton, Ont. (52,600).
* Vital Stats: Revenue (last 12 mos), $18.3 billion; Profit/Loss (last 12 mos),
$8.5 billion loss; Market Cap, $10.87 billion; Shares Outstanding, 3.84 billion.
* Schachter’s Comment: “This company is coming back and showing that it is doing better than (competitor) Lucent. The balance sheet is better and I believe this stock could be worth $5 to $6 over the next six to nine months.”
* Risk Rating: Extremely High.
* Web watch: www.nortelnetworks.com
* Schachter’s Record (9 picks in past year): +4.6%. Best Pick: Nortel at $1.66 (+70.5%). Worst Pick: Nortel at $10.15 (-72.1%).
* Disclosure: Schachter Asset Management has funds that are invested in the featured stocks or have them on their recommendation list.