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

FEATURED PRO:

Mal Spooner

Mal Spooner is CEO and portfolio manager of Mavrix Investment Management Inc. (www.mavrixfunds.com), which manages the Mavrix series of funds.

Fund Form: Three of the Mavrix funds are among the biggest movers in Canada in the past 12 months. The Mavrix Canadian Small Cap Fund has a 12-month return of 87.8 per cent, the Mavrix Enterprise Fund has a 12-month return of 70.7 per cent and the Mavrix Canadian Strategic Equity Fund has a 12-month return of 60.2 per cent.

Spooner’s Perspective: “Uncertainty over whether U.S. interest rates will rise has put pressure on stocks and made them less expensive. I think most of that concern is unwarranted.

“The only good reason to raise rates right now would be to fight inflation, which so far continues to be benign. As long as everyone’s worried about rates going up, I’m bullish.

“The little interruptions (corrections) we’re seeing in this market are healthy for the market, I believe. You don’t have the kind of speculative fervour that we’ve seen in previous bubbles.”


FIRST STAR



* International Forest Products (IFP.A-TSX)

* Recent Price: $6.95.

* 52-Week Range: $4.31-$7.25.

* Spooner’s 12-month Target: $10.

* Snapshot: Interfor is a logging and sawmilling company that produces a diverse range of wood products for international markets. It has 37 logging operations and six sawmills in the coastal region of B.C. and one logging operation and one sawmill in the Interior of B.C.

* CEO: D.K. Davies.

* Head Office: Vancouver (3,400 employees).

* Vital Stats: Revenue (last 12 mos), $603.7 million; 5-Yr Revenue Growth, 1.5 per cent; Earnings/Loss (last 12 mos), $23 million Loss; Market Cap, $239.54 million; Shares Outstanding, 34.47 million.

* Spooner’s View: “Interfor has been quite a laggard relative to some other forest product companies. I’m seeing a pickup in advertising and very strong housing construction growth in North America, which bodes well for pulp and lumber.

“I think the softwood dispute (with the U.S.) has kept the forest products stocks inexpensive and Interfor is one of my favourites.”

* Spooner’s Risk Rating: Medium.

* Web Watch: www.interfor.com


SECOND STAR



* Zarlink Semiconductor (ZL-TSX)

* Recent Price: $5.55.

* 52-Week Range: $3.40-$7.94.

* Spooner’s 12-month Target: $10.

* Snapshot: Zarlink provides semiconductor products to the wired, wireless and optical connectivity markets as well as for ultra low-power medical applications.

* CEO: Pat Brockett.

* Head Office: Ottawa (1,278 employees).

* Vital Stats: Revenue (last 12 mos), $273.6 million; 5-Yr Revenue Growth, -30.6 per cent; Earnings/Loss (last 12 mos), $82.9 million Loss; Market Cap, $706.37 million; Shares Outstanding, 127.27 million.

* Spooner’s View: “With Celestica making a good move up recently and the overall strength of earnings numbers for technology companies in North America, that suggests to me that we’ve reached the bottom of the semiconductor cycle. Zarlink has introduced quite a few innovative products in the past year, but it hasn’t gotten a lot of attention. I expect those products will work their way into revenue and earnings.

“I think this stock, which has lagged other stocks in the semiconductor space, will catch up.”

* Spooner’s Risk Rating: High.

* Web Watch: www.zarlink.com


THIRD STAR

* Ipsco (IPS-TSX)



* Recent Price: $26.32.

* 52-Week Range:

$11.50-$27.

* Spooner’s 12-month Target: $30.

* Snapshot: Ipsco is an integrated producer of steel products. Its operations in Regina, Iowa and Alabama have a combined steelmaking production capability of 3.5 million tons of steel products.

* CEO: David Sutherland.

* Head Office: Regina (2,400 employees).

* Vital Stats: Revenue (last 12 mos), $1.7 billion; 5-Yr Revenue Growth, 9.6 per cent; Earnings/Loss (last 12 mos), $15.9 million Loss; 5-Yr Earnings Growth, -61 per cent; Market Cap, $1.25 billion; Shares Outstanding, 47.67 million; Dividend Yield, 0.70 per cent.

* Spooner’s View: “I think the fortunes of the steel industry are clearly tied to infrastructure spending and industrial production. In the low- interest environment we’re in, that means the earnings for steel companies are very sensitive to a much stronger North American economy, which I believe in. We’re also seeing much stronger steel prices generally, which affirms that demand is strong for steel product. Ipsco is one of the highest-quality plays in the sector in terms of their balance sheet being in good shape, and also has some exposure to the robust energy market, which many other steel manufacturers don’t have.”

* Spooner’s Risk Rating: Low.

* Web Watch: www.ipsco.com

Disclosure: The featured stocks are held in the Mavrix Strategic Equity Fund. Spooner owns shares in the fund.