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

FEATURED PRO:

Jean-Francois Tardif is a senior portfolio manager with Sprott Asset Management and manages the new Sprott Opportunities Hedge Fund as well as co-managing other funds in the firm.

Fund Form: The Sprott Opportunities Hedge Fund has returned 4.1 per cent since it was launched in April and the Sprott Equity Fund has a one-year return of 41.5 per cent.

Jean-Francois Tardif

Management Expense Ratios: Opportunities Fund, two per cent (plus incentives); Equity Fund, 2.5 per cent.

Tardif’s Perspective: “Overall, we still see this as a very dangerous, bear market. The new U.S. trade deficit was recently announced at $55 billion, a new record. That deficit is very negative for the U.S. dollar, which means the Canadian dollar should go up, and of course a rising Canadian dollar is very negative for Canadian manufacturing companies.

“The U.S. consumer is also very much extended and it’s just a question of time before they slow down their spending. That slowdown in spending is very bad for anyone who produces or sells consumer products.

“We continue to be very bullish on energy stocks and precious metals stocks and that’s where we’re finding our top picks.”

First Star

* Queenstake Resources (QRL-TSX)

* Recent Price: $0.47.

* 52-Week Range: $0.39-$0.98.

* Snapshot: Queenstake became a major player in the gold market in 2003 by purchasing the Jerritt Canyon Mine in Nevada that has produced about seven million ounces of gold since 1981.

* CEO: Christopher Davie.

* Head Office:

New Westminster, B.C.

* Vital Stats: Revenue (last 13 mos), $94.5 million; Earnings/Losses (last 12 mos), $18 million Loss; Market Cap, $173.61 million; Shares Outstanding, 369.40 million.

* Tardif’s View: “This is a strong opportunity because the stock has dropped so much. This company is going to produce around 300,000 ounces (annual production) and we believe they will be at that level (of production) soon.

The market cap is only $200 million, they have no debt and if they achieve their targets, and we believe they will, this stock would be trading at three times next year’s cash flow (per share). That makes it amazingly cheap compared to so many other stocks in the gold sector.”

* Tardif’s Risk Rating: High.

* Web Watch: www.queenstake.com

SECOND STAR

* Calfrac Well Services (CFW-TSX)

* Recent Price: $31.50.

* 52-Week Range: $21-$32.50.

* Snapshot: Calfrac is an oil and gas service company specializing in hydraulic fracturing services to the industry in Canada and the U.S.

* CEO: Douglas Ramsay.

* Head Office: Calgary.

* Vital Stats: Revenue (last 12 mos), $85.2 million; 5-Yr Revenue Growth, 8.2 per cent; Earnings/Loss (last 12 mos), $7 million Loss; Market Cap, $538.87 million; Shares Outstanding, 17.1 million.

* Tardif’s View: “We like this stock because it’s a play on declining production of natural gas in North America and Calfrac is doing the fracturing (well) services for all the CBM (coalbed methane) companies. CBM is really the growth area for natural gas in North America and there should be a huge upside from that growth. This is a very specialized area and the number of CBM wells will continue to rise quickly in Canada. Calfrac will benefit from Canadian growth and U.S. growth in this area.”

* Tardif’s Risk Rating: Medium.

* Web Watch: www.calfrac.com

THIRD STAR

* Pioneer Natural Resources (PXD-NYSE)

* Recent Price: $34.50 US.

* 52-Week Range: $23.70-$37.50.

* Snapshot: Pioneer is a senior oil and gas producer with its asset base anchored in three projects – the Spraberry oil field in Texas, the West Panhandle gas field in the Texas Panhandle and the Hugoton gas field in Kansas.

* CEO: Scott Sheffield.

* Head Office: Irving, Tex.

* Vital Stats (U.S. dollars): Current Price/Earnings Ratio, 10.52; Revenue (last 12 mos), $1.6 billion; 5-Yr Revenue Growth, -14.2 per cent; Earnings (last 12 mos), $379.1 million. Market Cap, $4.14 billion; Shares Outstanding, 120.09 million; Dividend Yield, 0.50 per cent.

* Tardif’s View: “This producer has a very long reserve life and trades at a major discount to the average oil and gas producer. They’re growing faster than most other companies.

“Overall, we’re finding that many U.S. oil and gas stocks are cheaper, particularly in the smaller and mid-sized companies. That’s unusual because most sectors trade cheaper in Canada than the U.S.”

* Tardif’s Risk Rating: Medium.

* Web Watch: www.pioneernrc.com

* Tardif’s Edge Record: +8.6 per cent. Best Pick: Newalta Income Fund (NAL.UN-TSX) +51 per cent. Worst Pick: Dorel Industries (DII.B-TSX)

-18.2 per cent.

* Disclosure: Tardif holds positions in the funds in which the featured stocks are held. All the stocks are held in the Sprott Opportunities Hedge Fund as well as other Sprott funds.