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

FEATURED PRO Fred Pynn is senior vice-president and portfolio manager of Calgary-based Bissett Investment Management (www.franklintempleton.ca/bissett). Pynn, who has been with Bissett since 1986, is responsible for Canadian and U.S. equity selection.

The featured stocks are held in the Bissett Canadian Equity Fund, which has gained 2.8 per cent in the past 12 months, outperforming the group average of -4.2 per cent. The fund is up 10.9 per cent since its inception in 1986.

Pynn’s Perspective: “I think we’re getting closer (to a market bottom). I think there are lots of bargains out there. You’ve got all this volatility and people are scared and upset, but that’s what spells opportunity when you have a longer-term view. Maybe this isn’t the absolute low, but we think we’re close to it.

“We’re basically fully invested in the funds we manage. We’ve been going back into the market recently buying again.”



FIRST STAR
* Biovail (BVF-TSX)
* Recent Price: $35.20. * 12-Month Range: $32.15-$91.
* Snapshot: Biovail is Canada’s pharmaceutical giant and boasts 18 products that have generated more than $400 million in worldwide sales per year. It also has 16 products under development.
* CEO: Eugene Melnyk.
* Head Office: Mississauga, Ont. (1,425 employees).
* Vital Stats: Price/Earnings Ratio, 33.2; Revenue (last 12 mos), $919.0 million; 5-Yr Revenue Growth, 57.8%; Profit (last 12 mos), $176.4 million; Market Cap, $5.17 billion; Shares Outstanding, 147.0 million.
* Pynn’s Comment: “This company has been all beaten up, but we think its prospects are very good going forward. The whole pharmaceutical industry has been weak and Biovail has been caught up in all these accounting issues, but we think that most of the concerns with Biovail are overblown. They also have a good schedule of new drugs coming on the market over the next year.”
* Pynn’s Risk Rating: High
Web watch: www.biovail.com



SECOND STAR
* Dorel Industries (DII.B-TSE)
* Recent Price: $36.50.
* 12-Month Range: $24.65-$39.70.
* Snapshot: Dorel is a commercial products manufacturer and distributor with operations in North America, Europe and the Orient. Its market spans 60 countries and products include ready-to-assemble furniture, juvenile furniture and accessories and home furnishings.
* CEO: Martin Schwartz.
* Head Office: Westmount, Que. (3,600 employees).
* Vital Stats: Price/Earnings Ratio, 22; Revenue (last 12 mos), $1.5 billion; 5-Yr Revenue Growth, 25.8%; Profit (last 12 mos), $45.9 million; 5-Yr Profit Growth, 11.1%; Market Cap, $961.6 million; Shares Outstanding, 26.3 million.
* Pynn’s Comment: “This company has had a nice growth record over time and the stock is not very expensive. It’s a mid-sized company with good growth and lots of exposure to the U.S. market. We own it in both our small cap and large-cap (Canadian Equity) funds.”
* Pynn’s Risk Rating: Medium.
* Web watch: www.dorel.com



THIRD STAR
* Manulife Financial (MFC-TSX)
* Recent Price: $38.82.
* 12-Month Range: $34.35-$48.25.
* Snapshot: Manulife is a financial-services company operating worldwide and offering a diverse range of financial-protection products and wealth-management services.
* CEO: Dominic D’Alessandro.
* Head Office: Toronto (12,500 employees).
* Vital Stats: Price/Earnings Ratio, 15.8; Revenue (last 12 mos), $16.8 billion; Profit (last 12 mos); $1.2 billion; Market Cap, $18.74 billion; Shares Outstanding, 482.6 million; Dividend Yield, 1.4%.
* Pynn’s Comment: “This stock has also been getting beaten up with everything else in this market downturn, but this company has very strong operations. Of the life insurance companies in Canada that have demutualized, it has had the best growth rate, the best profits and the steadiest growth. The company operates in Canada, the U.S. and the Far East which makes them very diversified geographically. Recently, they’ve been moving into mainland China and Japan.”
* Pynn’s Risk Rating: Low.
* Web watch: www.manulife.com
* Pynn’s Record (with nine picks last nine months): +9% (Best Pick, CAE +29%; Worst Pick, Magna International -8%). Pynn continues to recommend all previous picks except for CAE which he rates neutral.
* Disclosure: Pynn says he does not directly own any of the stocks, although he may own the funds they are held in.