(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 currently showing a one-year after-tax return of 19.3 per cent and a three-year return of 23.8 per cent.
Management Expense Ratio: Seven per cent Tardif's Strategy: "The danger is still there with the markets this year. There are a lot of people selling assets to stay alive.
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| Jean-Francois Tardif |
I plan to stay with the same strategy and be consistent. There is a lot of discussion whether we will see a recession and what effect it will have on the markets. I will say that you will see a recession this year (in the United States). In Canada, provinces like Ontario and Quebec will suffer, but Manitoba, Saskatchewan, Alberta and B.C. will still be strong. In Manitoba, you have strong commodities like the price of grain and wheat; in Alberta, you have oil and gas. We're not changing our strategy this year for the most part."
FIRST STAR
• 5N Plus Inc. (TSX:VNP) • Recent price: $7.75 • 52-Week Range: $3.90-$9.45 (01/02-12/20) • Snapshot: 5N Plus Inc. produces metal compounds used in the production of electronic devices such as solar energy panels, medical imaging equipment and infrared detectors.
• CEO: Jacques L'Ecuyer • Head Office: Saint Laurent, Que.
• Vital Stats: Price/Earnings Ratio (trailing twelve months), 64.60; Revenue (last fiscal year), $21.9 million; Earnings Per Share 0.12; Market Cap $220 million.
• Tardif's View: "They are in the business of refining rare metals to be used in electronic devices. The one application that has the most potential is with thin-film solar panels. There is a huge amount of growth lately in the solar industry and 5N Plus appears well poised to take on that growth.
They just announced the opening of a big plant in Germany that will become operational later this year. They also have some big contracts in the pipeline. The only thing is, this is not cheap on trailing or past earnings, so there is a certain amount of risk attached."
• Risk Rating: High • Web Watch: www.5nplus.com
SECOND STAR
• Glentel Inc. (TSX:GLN) • Recent Price: $10.89 • 52-Week Range: $12-$7.03 (11/20-10/18) • Snapshot: Glentel Inc. sells wireless products and plans to consumers, business, and government and operates corporately owned fixed/mobile terrestrial and satellite wireless systems in Canada and the United States.
• CEO: Thomas Skidmore • Head Office: Burnaby, B.C.
• Vital Stats: Price/Earnings Ratio (ttm), 17; Revenue (last fiscal year), $181.72 million; Earnings Per Share (ttm), 0.64; Market Cap, $106 million.
• Tardif's View: "Glentel has phone stores in retail malls and other locations. A couple of things are going in their favour this year: Eventually, when Apple releases the iPhone in Canada, they should have it in their stores. They have also opened a lot of new stores in the past year that are driving revenue. These stores are inside Costco locations, kind of a store-within-a-store concept. Sales were up 100 per cent in 2007 and I expect they will continue to do well this year."
• Risk Rating: Medium • Web Watch: www.glentel.com
THIRD STAR
• Atrium Innovations (TSX:ATB) • Recent Price: $20.95 • 52-Week Range: $29.77-$14.52 (07/13-01/11) • Snapshot: Quebec-based Atrium Innovations Inc. is a leading developer and manufacturer of science-based products for the cosmetics, pharmaceutical, chemical and nutritional industries. The company says it focuses primarily on parts of the health- and personal-care markets that follow the trend toward healthy living and an aging population.
Last winter, it announced revenues of US$306.1 million for the year ended Dec. 31, up 52 per cent from US$200.9 million in the previous fiscal year.
• Vital Stats: Price/Earnings Ratio, 20.30 (ttm); Total Revenue $314.68 million; Earnings Per Share, $1.03; Market Cap $635 million.
• CEO: Pierre Fitzgibbon • Head Office: Quebec City • Tardif's View: "I still think that Atrium is going to do well for the coming year. Management has a stable structure in place and wants to grow. All the factors show they should do well once they expand. The Baby Boomers are getting older and need wellness products... . This is a trend that should stack up well in the coming year. It's reasonable to expect they could be trading at 20 times earnings by the end of this year."
• Risk rating: Medium • Web Watch: www.atrium-bio.com • Tardif's Edge Record (last 12 mos): +2.86 per cent. Best Pick: Genivar Income Fund (TSX:GNV.UN) +39 per cent. Worst Pick: Atrium Innovations (TSX:ATB) -9 per cent.
Disclosure: Tardif owns shares in the Sprott Opportunities Hedge Fund in which the featured stocks are held.
(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.)







