(Business Edge writer David Hatton regularly profiles the top stock picks of some of Canada's most accomplished investment pros.)
FEATURED PRO: Jean-Francois Tardif is a portfolio manager with Sprott Asset Management (www.sprott.ca). He is the lead manager for the Sprott Opportunities Hedge Fund.
Fund Form: Sprott Opportunities Hedge Fund is showing a one-year after-tax return of 18.3 per cent and a three-year return of 20.5 per cent, using data as of April 30, 2008.
Management Expense Ratio: 6.68 per cent Tardif's Strategy: "We predict that the price of energy will continue to go higher ... (oil selling for) around $120 a barrel. That trend is very real. The U.S. market continues to be bad with stock prices down 50, 60 and 70 per cent in some cases. It's telling you the system is in distress and is deleveraging after leveraging for 10 or 12 years in a row. The bottom line here is tons of sellers and not enough buyers. This is not the same as in the '90s.
![]() |
| Jean-Francois Tardif |
"There are lots of other concerns. Inflation is at a 14-year high and at a multi-year high in China. Look at the price of rice - it's gone from $300 a tonne to $1,000 a tonne. Eventually, interest rates will go up and they will go up high, even into the double digits soon. These are difficult times and we're being very careful as a result."
First Star
* Deere & Company (NYSE:DE)
* Recent Price: US$84.07
* 52-Week Range: US$94.89-US$53.76 (04/18-05/01)
* Snapshot: Deere & Company manufactures agricultural equipment, as well as construction, forestry, and commercial and consumer equipment. The company also provides credit, special technology, and managed health-care products and services.
* CEO: Robert Lane
* Head Office: Moline, Ill.
* Vital Stats: Price/Earnings Ratio (trailing 12 months), 19.50; Revenue (last fiscal year), US$24.1 billion; Earnings Per Share, $4.31; Market Cap, US$36.6 million.
* Tardif's View: "Their earnings have been rising and the company is posting some impressive performance lately. If you look at farmers' wheat grain prices, they are making a lot of money right now and should be happy to spend money on equipment like trucks, etc. The earnings growth has gone up, but the (price earnings) level is not that high. I believe it can easily trade at about 20 times earnings."
* Risk Rating: Low
* Web Watch: www.deere.com
Second Star
* Premium Brands Income Fund (TSX:PBI.UN)
* Recent Price: $13.22
* 52-Week Range: $15.53-$11.17 (11/08-01/21)
* Snapshot: Premium Brands Income Fund owns a broad range of branded specialty food businesses with manufacturing and distribution facilities located throughout Western Canada and Washington. The fund's family of brands includes Grimm's, Harvest, McSweeney's, Harlan's, Quality Fast Foods, Hygaard, Hempler's, Gloria's, Bread Garden, Centennial, Stuyver's & Made-Rite.
* CEO: Fred Knoedler
* Head Office: Richmond
* Vital Stats: Price/Earnings Ratio (ttm), 9.10; Revenue (last fiscal year), $277.7 billion; Earnings Per Share (ttm), $1.45; Market Cap, $231 million.
* Tardif's View: "This is a western-based company that distributes to restaurants and grocery stores. The western provinces are booming right now, so that should be good for sales in those industries. They had a key acquisition last year that was just reported and should improve their results even more."
* Risk Rating: Medium
* Web Watch: www.premiumbrandsincomefund.com
Third Star
* Coastal Energy (TSXV:CEN)
* Recent Price: $4.25
* 52-Week Range: $5.20-$2 (01/08-09/17)
* Snapshot: Coastal Energy is an oil and gas exploration, development and production company, with core assets onshore and offshore Thailand.
* Vital Stats: Price/Earnings Ratio, n/a (ttm); Earnings Per Share, n/a; Total Revenue, n/a; Market Cap, $342.6 million.
* CEO: Randy Bartley
* Head Office (North America): Houston
* Tardif's View: "They have found this niche producing oil and gas in Thailand. Their reserves have been going up 20 to 25 per cent every year. The stock still trades at a single PE, however, and production is strong so it appears like it might have this underlying potential."
* Risk Rating: High
* Web Watch: www.coastalenergy.com Tardif's Edge Record (last 12 months): 12.7 per cent. Best Pick: Atrium Innovations (TSX:ATB) 18.3 per cent. Worst Pick: Genivar Income Fund (TSX:GNV.UN) -11 per cent.
NOTE: Tardif may own shares in some or all of the companies listed.
(This feature is provided for informational purposes. Investors are advised to do their own research or consult a qualified investment professional before making investment decisions).







