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

FEATURED PRO: Jason Donville is president and director of research for Calgary-based Lightyear (www.lightyearcapital.com), an independent investment boutique that focuses on small caps.

Donville’s Perspective: “I suspect we’re finding some kind of a market bottom, but the recent rally has kind of caught us all off guard. Earnings seem to be bottoming, but I don’t think we have a strong sense of how fast they’re going to recover so, at this point, we’re basically focusing on picking the right companies rather than making a market call.

“If you’re a contrarian investor looking at what’s out of favour, the retail stocks look cheap right now, but I think that, in the short term, the financial-services stocks have more upside than the retailers, which may look better as we move closer to Christmas.”



FIRST STAR
* Canadian Western Bank (CWB-TSX).
* Recent Price: $25.25.
* 12-Month Range: $22.75-$29.50.
* Donville’s Call: Buy.
* 12-Month Target: $32.
* Snapshot: Canadian Western is banking its future on the West. It operates through 27 branch locations and is the only Schedule 1 chartered bank based in Western Canada. It provides investment services through the Canadian Western Trust arm and its subsidiary, CWB Canadian Western Financial.
* CEO: Larry Pollock.
* Head Office: Edmonton (509 employees).
* Vital Stats: Current Price/Earnings Ratio, 10.1; Revenue (last 12 mos), $170.3 million; 5-Yr Revenue Growth, 9.3%; Profit (last 12 mos), $30.2 million;
5-Yr Profit Growth, 8.4%; Market Cap, $319.93 million; Shares Outstanding, 12.66 million; Dividend Yield, 0.8%.
* Donville’s Comment: “The stock is trading close to book value and it’s the most well-capitalized bank in the Canadian banking industry. I think the opportunities are excellent for acquisitions next year.”
* Donville’s Risk Rating: Low.
* Web watch: www.cwbank.com



SECOND STAR
* Contrans Income Fund (CSS.UN-TSX)
* Recent Price: $9.25.
* 12-Month Range: $8.40-$10.60.
* Donville’s Call: Buy.
* 12-Month Target: $12.50.
* Snapshot: Contrans lives life in the fast lane, truckin’ along with 1,200 tractors and 1,900 trailers operating predominantly in Eastern Canada and the Eastern, Midwest and Southern U.S. Trucking firms in the fold include Brookville Carriers, Filion Transport and Glen Tay Transport. It also operates a fleet of school buses.
* CEO: Stan Dunford.
* Head Office: Woodstock, Ont. (777 employees).
* Vital Stats: Current Price/Earnings Ratio, 3.0; Revenue (last 12 mos), $257.7 million; Profit (last 12 mos), $16 million; Market Cap, $152.22 million; Shares Outstanding, 16.46 million; Dividend Yield, 3.38%.
* Donville’s Comment: “Contrans has a very strong management team and they have very defensive earnings. They’re in trucking, but they’re also in segments like school buses that are not as sensitive to economic cycles.”
* Donville’s Risk Rating: Medium.
* Web watch: www.contrans.ca



THIRD STAR
* Sun-Rype Products (SRF-TSX)
* Recent Price: $6.21.
* 12-Month Range: $5.55-$8.
* Donville’s Call: Buy.
* 12-Month Target: $7.80.
* Snapshot: Sun-Rype is the big apple of the West. It’s Western Canada’s largest manufacturer of juice-based beverages and all-natural fruit snacks. Beverages are sold primarily in Western Canada while the food products are sold throughout the country.
* CEO: Lawrence Bates.
* Head Office: Kelowna, B.C. (385 employees).
* Vital Stats: Current Price/Earnings Ratio, 17.2; Revenue (last 12 mos), $105 million; 5-Yr Revenue Growth, 5.8%; Profit (last 12 mos), $3.9 million; Market Cap, $66.21 million; Shares Outstanding, 10.66 million.
n Donville’s Comment: “Jimmy Pattison (one of Canada’s most successful entrepreneurs) owns about 20 per cent of this company. It has a fantastic brand and they’ve also expanded their capacity with fruit bars, which are selling very well. Their food products are mostly healthy.”
* Donville’s Risk Rating: Low.
* Web watch: www.sunrype.com
* Donville’s Edge Record (12 picks): +12.9%. Best Pick: CCR Income Trust (CCS.UN-TSX) +157.7%. Worst Pick: Liquidation World -42.1%.
* Disclosure: Donville says he personally owns shares in Contrans Income Fund.