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

FEATURED PRO

Martin Ferguson, partner and portfolio manager of the Mawer New Canada Fund at Calgary-based Mawer Investment Management (www.mawer.com)

Ferguson’s Strategy: “We systematically create a diversified portfolio of wealth-creating companies at a discount to their intrinsic value and we emphasize those that we believe to be in the right part of their cycle. We tend not to time the market. Our view on the overall market has more to do with asset mix and certain weightings. We tend to be fully invested at all times.”

Ferguson’s New Canada Fund ranked third out of 142 Canadian small-cap funds in 2002 (the following stocks are held in that fund).



FIRST STAR

* CHC Helicopters (FLY.A-TSE)

* Recent Price: $18.28

* Year Range: $9.05-$23.25.

* Snapshot: CHC provides worldwide helicopter services to the oil and gas industry, specializing in offshore support. The company has a fleet of 300 aircraft operating in 21 countries and also offers flight training and overhaul services.

* CEO: Craig Dobbin.

* Head Office: St. John’s, Nfld. (2,500 employees).

* Vital Stats: Price/Earnings Ratio, 6.6; Revenue (last 12 mos), $574.5 million; Profit (last 12 mos), $45.0 million; Market Cap, $245.3 million; Shares Outstanding, 13.4 million; Dividend Yield, 0.6%.

* Ferguson’s Comment: “I like the fact that they are in an industry that has boiled down to very few competitors, the fact they serve their clients under long-term contracts and the fact that management is focused on return on invested capital.”

* Ferguson’s Risk Rating: Medium.

* Web watch: www.chc.ca



SECOND STAR

* Northside Group (NTG-TSE)

* Recent Price: $8.25.

* Year Range: $2.40-$8.25.

* Snapshot: Northside is an engineering-driven manufacturing company that builds and designs dynamic truck bodies for use on heavy trucks and produces structural and fabricated parts and assemblies for transportation-related equipment. Two of its four plants are in Western Canada, in Medicine Hat and Kelowna, B.C. The company is planning to change its name soon to Wittke Inc.

* CEO: Patrick Ross.

* Head Office: Toronto (970 employees).

* Vital Stats: Price/Earnings Ratio, 29.5; Revenue (last 12 mos), $105.0 million; 5-Yr Revenue Growth, 25.8%; Profit (last 12 mos), $2.1 million; Market Cap, $63.4 million; Shares Outstanding, 7.7 million.

* Ferguson’s Comment: “Originally, their core business was making truck parts for Class A trucks. That’s now secondary. Their big business now is what they call dynamic truck bodies. Basically, they build garbage trucks, street sweepers and cement trucks. And business is booming, largely due to a contract with Waste Management International.”

* Ferguson’s Risk Rating: Medium.

* Web watch: www.wittke.com



THIRD STAR

* Mullen Transportation (MTL-TSE)

* Recent Price: $26.

* Year Range: $20-$38.

* Snapshot: Mullen is a broad-based transportation company that provides management and financial expertise in technology to its wholly owned subsidiaries. The company is recognized as the leading supplier of trucking and logistics services in Canada, operating a fleet of 1,200 trucks and 2,500 trailers.

* CEO: Murray Mullen.

* Head Office: Aldersyde, AB (416 employees).

* Vital Stats: Price/Earnings Ratio, 10.5; Revenue (last 12 mos), $369 million; Profit (last 12 mos), $35.0 million; Market Cap, $375.5 million; Shares Outstanding, 14.4 million; Dividend Yield, 1.5%.

* Ferguson’s Comment: “There is one concern that activity in the oilpatch will probably be weak in 2002, which would affect them. At the same time, there will be some infrastructure spending by companies like Suncor Energy and Syncrude Energy, so there should be some revenue generated that way. It’s a company I like longer term. I believe management is focused on return on investment capital, their costs are very much under control, they have a pristine balance sheet, minimal financial risk and great management.”

* Ferguson’s Risk Rating: Low.

* Web watch: www.mullen-trans.com

* Disclosure: Mawer partners are restricted from owning individual stocks they cover, but may hold the stocks indirectly in funds.