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

FEATURED PRO: Kirby Thibeault is president of Calgary-based Kapital Investments Corp. (www.kapital-investments.com).

Thibeault’s financial market commentary, available to subscribers online, strives to give investors a three- to six-month lead on anticipated market behaviour. The former stockbroker has a master’s degree in financial economics.

Thibeault’s Perspective: “It is my expectation that Internet stocks will produce excess returns over the next 12 to 18 months. The global Internet penetration rate is only 12.5 per cent, with the greatest potential for growth in Africa, Asia and Europe.

Kirby Thibeault

“In the developed world, I expect that increased advertising expenditures, content and broadband growth will contribute large percentages of revenue and profit gains to countries with high Internet penetration rates. The greatest expected growth in the developing world is expected to come from broadband, content and wireless Internet growth in places such as China and other developing nations, where the economies are rooted in infrastructure growth at present.

“It is my view that the following companies will produce significant rates of capital appreciation over the next 12 to 18 months.”

FIRST STAR

* Google Inc. (Nasdaq:GOOG)

* Recent Price: $137.40 US.

* 52-Week Range: $95.96-$139.88.

* Snapshot: Google offers global Internet search solutions and generates revenue through online advertising.

* CEO: Eric Schmidt.

* Head Office: Mountain View, Calif.

* Vital Stats (U.S. dollars): Current Price/Earnings Ratio, 597.40; Revenue (last 12 mos), $1.5 billion; Earnings (last 12 mos), $105.6 million; Market Cap, $37.27 billion; Shares Outstanding, 271.2 million.

* Thibeault’s View: “Google has been a Kapital pick since $101 US. To my mind, the company is in its infancy and will be looked upon as one of the catalysts that triggered investment capital going back into technology stocks.

“I expect Google will complete another financing within six to 12 months in the $145 to $160 US per share. The company has a large advertising market to penetrate and build over time.”

* Thibeault’s Risk Rating: High.

* Web Watch: www.google.com

SECOND STAR

* Yahoo! Inc. (Nasdaq:YHOO)

* Recent Price: $34.23 US.

* 52-Week Range: $18.97-$36.51.

* Snapshot: Yahoo is a global Internet communications, commerce and media company and also provides online business solutions.

* CEO: Terry Semel.

* Head Office: Sunnyvale, Calif.

* Vital Stats (U.S. dollars): Current Price/Earnings Ratio, 136.08; Revenue (last 12 mos), $2.6 billion; 5-Yr Revenue Growth, 29.9 per cent; Earnings (last 12 mos), $354.1 million; Market Cap, $46.57 billion; Shares Outstanding, 1.36 billion.

* Thibeault’s View: “Yahoo has been a Kapital pick since April. I expect Yahoo will continue to report high revenue and earnings growth going forward and benefit from higher price expectations in the Internet segment of the technology sector.

“The company has an efficient capital structure and I do not expect that it will have difficulty raising capital should it choose to do so. Consequently, I expect institutions to increase their ownership in the stock (through financings).”

* Thibeault’s Risk Rating: High.

* Web Watch: www.yahoo.com

THIRD STAR

* Chinadotcom Corporation (Nasdaq:China)

* Recent Price: $4.94 US.

* 52-Week Range: $3.94-$12.73.

* Snapshot: The company provides enterprise software and solutions and mobile services as well as applications, marketing and advertising services to businesses in Asia, North America, the U.K. and Europe.

* CEO: Peter Yip.

* Head Office: Honolulu.

* Vital Stats (U.S. dollars): Current Price/Earnings Ratio, 27.22; Revenue (last 12 mos), $110.4 million; 5-Yr Revenue Growth, 59.8 per cent; Earnings (last 12 mos), $18.5 million; Market Cap, $517.20 million; Shares Outstanding, 104.70 million.)

* Thibeault’s View: “This company has been reporting a strong rate of revenue growth, having increased revenue from $28.5 million US to $81 million for the six months ending June 30. The stock is trading close to its book value of about $4 US per share. Conditional upon the company’s continued growth and higher price expectations in this sector, I expect this stock to jump in a volatile manner.”

* Thibeault’s Risk Rating: High.

* Web Watch: www.china.com

Thibeault’s Edge Record: +14.1 per cent. Best Pick: Peyto Energy Trust (TSX:PEY.UN) +50.8 per cent (return does not include yield on distributions to unitholders). Worst Pick: Cisco Systems (Nasdaq: CSCO) -17.1 per cent.

Disclosure: Thibeault says he does not personally own shares in the featured stocks.