(Business Edge columnist Gyle Konotopetz regularly profiles the top three stock picks of some of Canada’s most accomplished investment pros).

FEATURED PRO: Josef Schachter is president of Schachter Asset Management of Calgary and provides research to other firms such as Maison Placements Canada.

Schachter’s Perspective: “Third-quarter earnings should be fairly reasonable, so I don’t see much downside in the stock market. I think we’ll see a better stock market as we head into the end of the year. I think by the end of the year the Dow (index) could be at 10,400 (recently priced at 9,897) and the TSX could be at 8,900 (recently at 8,720).

“On the energy side, I think in the short term there may be a period of backing and filling with energy stocks, so if you’ve got some significant profits, you may want to harvest some of them and be patient with the market in the near term. I think we could see a correction of five to 10 per cent on the average. Many oil and gas stocks have gone up 50, 60 or 70 per cent over the past six months, so I’ve suggested to people that, if you have a core holding, you may want to take some profits around it. Then, you’ll have some firepower for some potential buying at the end of the year.

Joseph Schacter

“Having said that, there are still some energy stocks that I like and longer term I like the outlook for base metals, such as copper, aluminum and nickel.”

First Star

* Devlan Energy (TSX:DXI)

* Recent Price: $3.50.

* 52-Week Range: $2.15-$3.60.

* Schachter’s 12-Month Target: $6.40.

* Snapshot: Devlan is an oil and gas exploration and production company with key properties in Alberta and the Northwest Territories.

* CEO: Martin Cheyne.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 25.2; Revenue (last 12 mos), $30.9 million; 5-Yr Revenue Growth, 54 per cent; Earnings (last 12 mos), $3.6 million; Market Cap, $67.44 million; Shares Outstanding, 19.27 million.

* Schachter’s View: “In September, they concluded an acquisition in the Peace River Arch area and that opened up a lot of new lands for them. In terms of my model, (after) that acquisition I have them averaging 4,005 boe (barrels of oil equivalent) per day in 2005 and exiting 2005 at 4,800 boe per day. That would generate cash flow at the end of next year of $1.28 (per share).”

* Schachter’s Risk Rating: Medium.

* Web Watch: www.devlanx.com Second Star

* Accrete Energy (TSX:GZ)

* Recent Price: $2.25.

* 52-Week Range: $1.55-$2.73 (began trading in June).

* Schachter’s 12-Month Target: $3.60.

* Snapshot: Accrete is an oil and gas company focused on properties in south-central Alberta and is managed by the former management team of Olympia Energy, a company that was acquired in June.

* CEO: Peter Salamon.

* Head Office: Calgary.

* Vital Stats: Market Cap, $26.4 million; Shares Outstanding, 11.73 million.

* Schachter’s View: “This company is about to bring on new production, which will bring their production to about 500-plus boe per day. I have them exiting this year at 1,000 boe per day, averaging 1,325 boe per day in 2005 and exiting 2005 at 2,000 boe per day.

The insiders own about 30 per cent of the company and there’s no debt right now.”

* Schachter’s Risk Rating: Medium.

* Web Watch: www.accrete-energy.com Third Star

* Tyler Resources (TSX:TYS)

* Recent Price: $0.36.

* 52-Week Range: $0.45-$0.44.

* Schachter’s 12-Month Target: $3.

* Snapshot: Tyler is in the second phase of a three-phase drilling program at its Bahuerachi copper-gold property in Mexico.

* CEO: James Devonshire.

* Head Office: Calgary.

* Vital Stats: Revenue (last 12 mos), $0; Earnings/Loss (last 12 mos), $700,000 Loss; Market Cap, $24.55 million; Shares Outstanding, 68.2 million.

* Schachter’s View: “In the first phase of drilling at Bahuerachi, they showed the property had good width and depth and very good grades of copper and porphyres. If they can prove in the second phase that they can develop their property to 1.5 kilometres in length, then it is a world-class mine. In the third phase, they’ll try to prove it to be four km in length.

“Two major companies (prospective acquirers of Tyler), to my knowledge, have already been on the site and like what they see but they say, ‘Make it happen to 1.5 kilometres, and then we’ll chat.’ Although this is very speculative, it’s not just moose pasture we’re talking about. This property is in a major copper belt.”

* Schachter’s Risk Rating: High.

* Web Watch: www.tylerresources.com

Schachter’s Edge Record (past 12 mos): +39 per cent. Best Pick: Vaquero Energy (TSX:VAQ) +103.9 per cent. Worst Pick: Endev Energy (TSX:ENE) -2.5 per cent.

Disclosure: Schachter says his family owns shares in Tyler Resources and his wife owns shares in Accrete Energy. Maison Placements, a research client of Schachter’s, has participated in a financing for Accrete.