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

FEATURED PRO: Gene Vollendorf is president and portfolio manager of Savoy Capital Management (www.savoycapital.com).

The Calgary-based firm manages the Gladiator LP long/short fund.

Fund Form: The Gladiator LP Fund has a compound annual return of 41.9 per cent over the past two years. In the same period, the TSX has an annualized return of 9.4 per cent and the S&P 500 has an annualized return of 7.4 per cent.

Gene Vollendorft

Management Expense Ratio: 1.5 per cent, plus performance fees.

Vollendorf’s Perspective: “North American markets remain directionless with lots of sector volatility. Most investors are focused on the macro-environment – gold, energy prices, foreign exchange and interest rates.

“The market is at an inflection point that will require time to sort out before determining a specific direction. This behaviour is normal, considering the strong direction the market had in the previous 12 months. The biggest issues right now are the pace of global and U.S. growth and geopolitical risk.”

FIRST STAR

* Cyberplex Inc. (CX-TSX)

* Recent Price: $0.65.

* 52-Week Range:

$0.34-$0.76.

* Snapshot: Cyberplex is a provider of enterprise integration software services for corporations in the securities industry.

* CEO: Dean Hopkins.

* Head Office: Toronto (35 employees).

* Vital Stats: Current Price/Earnings Ratio, 16; Revenue (last 12 mos), $8.4 million; 5-Yr Revenue Growth, -18.1%; Earnings (last 12 mos), $1.5 million; Market Cap, $20.55 million; Shares Outstanding, 31.61 million.

* Vollendorf’s View: “Cyberplex has a top-rated management team that has established a very profitable core business which serves as a solid platform to grow. Specifically, the company intends to develop an acquisition strategy focused on accretive transactions in select enterprise software.

“Armed with $4 million of cash, management has a mandate to grow this business via acquisitions in excess of 30 per cent per year. The company is small, but the upside is substantial.”

* Savoy’s Risk Rating: Medium.

* Web Watch: www.cyberplex.com

SECOND STAR

* Wellco Energy Services Trust (WLL.UN-TSX)

* Recent Price: $8.95.

* 52-Week Range: N/A.

* Snapshot: Wellco is an income trust that provides a diversified suite of oilfield services to the Canadian energy industry.

* CEO: Rick Patmore.

* Head Office: Calgary.

* Vital Stats: Current Price/Earnings Ratio, 18.6; Monthly Distribution, $0.08 per trust unit; Revenue (last 12 mos), $31.9 million; 5-Yr Revenue Growth, 63.3%; Earnings (last 12 mos), $3.9 million; Market Cap, $113.5 million; Shares Outstanding, 12.7 million.

* Vollendorf’s View: “With energy prices near all-time highs, there should be strong capital expenditures earmarked for the Canadian oilpatch this winter. Oil-service companies that have quality equipment and people stand to benefit from this robust activity.

“Wellco has an energized management team focused on achieving 20-per-cent annual cash-flow growth.

This company trades at a discount to its peer group despite having superior growth characteristics.”

* Savoy’s Risk Rating: High.

* Web Watch: www.wellcoenergy.com

THIRD STAR

* Canfor Corp. (CFP-TSX)

* Recent Price: $14.85.

* 52-Week Range:

$8.28-$15.88.

* Snapshot: Canfor is the largest producer of softwood lumber and also produces kraft paper, plywood, remanufactured products, hardboard paneling and other products.

* CEO: Jim Shepherd.

* Head Office: Vancouver (10,290 employees).

* Vital Stats: Current Price/Earnings Ratio, 8.7; Revenue (last 12 mos), $2.3 billion; 5-Yr Revenue Growth, 4.4%; Earnings (last 12 mos), $145.1 million; Market Cap, $1.95 billion; Shares Outstanding, 131.51 million.

* Vollendorf’s View: “Canfor is one of the cheapest stocks in Canada’s large-cap universe while maintaining top decile earnings momentum. Earnings should continue to surprise on the upside as the strong lumber price environment persists and as the company continues to reduce its cost structure.

“Current consensus 2004 earnings per share estimates of $2.62 still appear too low. If current conditions are maintained, the company should earn in excess of $3 (per share). The company may also face further upside to earnings if a favourable ruling to the NAFTA (North American Free Trade Agreement) softwood dispute is resolved in Canada’s favour in the next six to 12 months.”

* Savoy’s Risk Rating: Medium.

* Web Watch: www.canfor.com

Vollendorf’s Edge Record: -10.7%. Best Pick: Enghouse (ESL-TSX) +19.0%. Worst Pick: Evolved Digital Systems (EVD-TSX) -72.4%.

Disclosure: The featured stocks are held in the Gladiator LP Fund managed by Vollendorf.

(Gyle Konotopetz can be reached at gyle@businessedge.ca)