(Every week, Business Edge writer Gyle Konotopetz profiles the top three stock picks of one of Canada’s most successful investment pros.)

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Doug Cooper is a Toronto-based analyst with Taurus Capital Markets (www.tauruscapital.com), which specializes in industrial and manufacturing products.

Cooper’s Current Strategy: “Typically, what I look for in companies is that they’re a leader in whatever they’re doing, they have a strong balance sheet, a good management team, a sustainable competitive advantage and stock that is reasonably priced. I’m pretty positive on the market right now. I think we’ve seen the bottom and we have still a favourable interest-rate environment where, quite frankly, the returns you’re going to be getting in the bond market aren’t that strong. So you probably should be in stocks.”



FIRST STAR

* Trojan Technologies (TUV-TSE)

* Recent Price: $7.45.

* 12-Month Range: $6.95-$7.49.

* Cooper’s Call: Buy (top rating).

* 12-Month Target: $10.

* Snapshot: Trojan is a high-technology environmental company that specializes in the design, manufacture and sale of ultraviolet disinfection systems and drinking-water systems, as well as industrial systems for beverage, pharmaceutical and semi-conductor applications.

* CEO: Allan Bulckaert.

* Head Office: London, Ont.

* Vital Stats: Revenue (last 12 mos), $73.8 million; 5-Yr Revenue Growth, 11%; Net Loss (last 12 mos), $4.9 million; Market Cap, $127.9 million; Shares Outstanding, 17.6 million.

* Cooper’s Comment: “Trojan has traditionally been involved in waste-water services, but they’ve now diversified their revenue base to include the drinking-water market. They recently won their first drinking-water contract for the City of Seattle. They are the technology leader in the ultraviolet market for drinking water. I still think there’s a big concern over water quality in North America and around the world and they’re well positioned to capitalize on it. They’re also coming out of a turnaround situation and about to show their first profit in 13 quarters. They’ve recently raised $15 million dollars.”

* Cooper’s Risk Rating: High.

* Web watch: www.trojanuv.com



SECOND STAR

* CFM Majestic (CFM-TSE)

* Recent Price: $15.

* 12-Month Range: $7.50-$15.49.

* Cooper’s Call: Buy (top rating).

* 12-Month Target: $20.

* Snapshot: CFM is a manufacturer of gas and wood-burning fireplaces, stoves and other hearth products in North America and the United Kingdom.

* CEO: Colin Adamson.

* Head Office: Mississauga, Ont.

* Vital Stats: Price/Earnings Ratio, 18.5; Revenue (last 12 mos), $434.8 million; 5-Yr Revenue Growth, 18.9%; Net Income (last 12 mos), $33.3 million; 5-Yr Income Growth, 26.4%; Market Cap, $570.5 million; Shares Outstanding, 38.0 million.

* Cooper’s Comment: “CFM is the leader in the hearth manufacturing market, but they’re also diversifying their revenue base and recently launched a line of barbecues. They have a very strong balance sheet and, for the year ending September of 2002, we’re looking for earnings of $1.14 (per share) and $1.31 (per share) in September of 2003.

* Cooper’s Risk Rating: High.

* Web watch: www.cfmmajestic.com



THIRD STAR * Mad Catz Interactive (MCZ-TSE)

(Mad Catz was one of Cooper’s top picks here on Nov. 22 when its price was $2.14)

* Recent Price: $1.40.

* 12-Month Range: 0.50-$3.04.

* Cooper’s Call: Buy (top rating).

* 12-Month Target: $4.65.

* Snapshot: Mad Catz makes innovative controllers and other peripherals for the console and PC game markets.

* CEO: Morris Perlis.

* Head Office: Brampton, Ont. (160 employees).

* Vital Stats: Revenue (last 12 mos), $96.2 million; Net Loss (last 12 mos), $29.4 million; Market Cap, $74.0 million; Shares Outstanding, 52.9 million. * Cooper’s Comment: “Mad Catz participates in the video-game industry, which is one of the few growth industries left these days. The launch of the XBox and Nintendo Game Cube have been very successful and Playstation 2 continues to sell very well. They’re gaining market share and the whole industry is growing at about 30 per cent, so I can’t understand it (the stock’s weakness). The risk to return on this stock looks incredible to me.”

* Risk Rating: High.

* Web watch: www.madcatz.com

* Cooper’s Record (with Nov. 22 picks): +5% (BW Technologies +54%, Mad Catz -35%, Magnifoam Technology -5%.

* Disclosure: Cooper says he does not personally own any of the stocks, but Taurus was involved in financing with Mad Catz in 1999.