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

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Doug Cooper, an analyst specializing in industrial and manufacturing products with Toronto-based Taurus Capital Markets (tauruscapital.com), which focuses on established Canadian small-cap companies.

Cooper’s Current Strategy: “While the Nasdaq market is up about 40 per cent since the bottom on Sept. 21, I think there are still good small-cap companies available at cheap valuations.”

First Star

* BW Technologies (BWT-TSE).

* Recent Price: $12.51.

* Year Range: $5.50-$13.

* Cooper’s Call: Buy (top rating).

* 12-Month Target: $17.50.

* Snapshot: BW Technologies is an international company that designs, manufactures and markets gas-detection instruments for the protection of workers and facilities. The company was founded in 1987. * CEO: Cody Slater.

* Head Office: Calgary (79 employees).

* Vital Stats: Current Price/Earnings Ratio, 21.6; Revenue (last 12 mos), $30.4 million; Earnings (last 12 mos), $3.2 million; Market Cap, $71.3 million; Shares Outstanding, 5.7 million.

* Cooper’s Comment: “They’ve just announced a new product launch which is impressive (an Infrared Sensor Assembly). They recently pre-announced their quarter-two revenue through Oct. 31 and it was in excess of $9 million versus $6 million (for the same period) last year. The recent results included the six weeks after Sept. 11. This is one of the ‘must-own’ stocks for investors with a high degree of risk tolerance.”

* Cooper’s Risk Rating: High.

* Web watch: www.bwtnet.com

Second Star

* Mad Catz Interactive (MCZ-TSE)

* Recent Price: $2.14.

* Year Range: 0.50-$3.04.

* Bartlett’s Call: Buy (top rating).

* 12-Month Target: $5.40.

* 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), $118.6 million; Losses (last 12 mos), $33.6 million; Market Cap, $110.5 million; Shares Outstanding, 51.6 million.

* Cooper’s Comment: “We expect the video-game growth rate to increase, which will drive the console-game manufacturers, which in turn will drive the manufacturers of the peripherals like joy sticks, controllers and steering wheels. That’s where Mad Catz will benefit. The company has a licence agreement with Microsoft, they’re a supplier to PlayStation 2 and also support Nintendo’s game cube.”

* Cooper’s Risk Rating: High.

* Web watch: madcatz.com

Third Star * Magnifoam Technology International (MTG-TSE)

* Recent Price: $2.90.

* Year Range: $2.15-$4.90.

* Cooper’s Call: Buy (top rating).

* 12-Month Target: $6.

* Snapshot: Magnifoam is an integrated material science company that specializes in insulation and cushioning products to the aerospace, automotive, industrial and protective packaging markets.

* CEO: Robert Keto.

* Head Office: Mississauga, Ont. (322 employees).

* Vital Stats: Price/Earnings Ratio, 18.1; Revenue (last 12 mos), $33.2 million; Earnings (last 12 mos), $4.6 million; Market Cap, $58.4 million; Shares Outstanding, 20.1 million.

* Cooper’s Comment (prior to recent release of financials): “The stock has come down recently (to $2.90) from a high of $4.90, so I think all the bad news from Bombardier (a major customer) is reflected in the stock price. Our view is that they will continue to be the dominant player in the insulation market for business jets with Bombardier. They’re also making a serious attempt to gain market share in the new thermal insulation side of the business. We think that an entry point below $3 will allow for excellent capital appreciation in the next year.”

* Cooper’s Risk Rating: High.

* Web watch: www.magnifoam.ca

* Disclosure: Cooper says he does not personally own any of the stocks, but Taurus has been involved in financing with BW Technologies and Mad Catz.