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

FEATURED PRO: Garey Aitken is vice-president and director of equity research at Calgary-based Bissett Investment Management (www.franklintempleton.com).

Bissett’s Fund Form (based on 12-month performance through February): Canadian Equity Fund, -12.9% (group average, -14.3%); Canadian Large Cap Fund, -15.5% (group average, -15.0%); Canadian Small Cap Fund, +0.3% (group average, -8.2%); Canadian Microcap Fund, +18.0% (group average,
-8.2%).

Aitken’s Perspective: “I think the sentiment with respect to the Iraqi war is really dominating things. Fortunately, we’ve continued to see positive in-flows with our mutual fund business so, if anything, that’s allowed us to capitalize on opportunities.

“Our investment style is very much a long-term approach. It’s really a matter of trying to buy into well-run businesses for an indefinite time period.”



FIRST STAR
* Petro-Canada (PCA-TSX)
* Recent Price: $49.95.
* 52-Week Range: $36.89-$54.01.
* Snapshot: Petro-Canada is an integrated oil and gas company that operates four core businesses – East Coast offshore, North American natural gas, refining and marketing, and international operations.
* CEO: Ron Brenneman.
* Head Office: Calgary.
* Vital Stats: Current Price/Earnings Ratio, 13.5; Revenue (last 12 mos), $1.2 billion; 5-Yr Revenue Growth, 4.6%; Profit (last 12 mos), $129.2 million; 5-Yr Profit Growth, 15.5%; Market Cap, $13.21 billion; Shares Outstanding, 264.55 million; Dividend Yield, 0.80%.
* Aitken’s View: “This is a core investment for us. It’s a very well-run company. Management has done a tremendous job in terms of refocusing their asset base, increasing profitability and last year they made a pretty bold thrust into the international arena by acquiring assets in various countries outside of Canada. That really gives them another platform for growth over the next decade.”
* Aitken’s Risk Rating: Low.
* Web watch: www.petro-canada.ca



SECOND STAR
* Gildan Activewear (GIL.A-TSX)
* Recent Price: $36.54.
* 52-Week Range: $26.49-$40.25.
* Snapshot: Gildan manufactures and markets activewear, including T-shirts, golf shirts and sweatshirts, which are sold through wholesale distributors.
* CEO: H. Greg Chamandy.
* Head Office: Ville St-Laurent, Que.
* Vital Stats: Current Price/Earnings Ratio, 15.0; Revenue (last 12 mos), $614.6 million; Profit (last 12 mos), $69.5 million; Market Cap, $839.02 million; Shares Outstanding, 22.96 million.
* Aitken’s View: “The reason we like this story is
that they continue to grow their revenues and income
significantly, even in a pretty challenging and mature
industry, and they’re getting that through market-share gains.
“They have a low-cost structure in the business and that allows them to grow in a much more profitable manner than their competitors who continue to move down the price points.”
* Aitken’s Risk Rating: Medium.
* Web watch: www.gildan.com



THIRD STAR
* Finning International (FTT-TSX)
* Recent Price: $24.56.
* 52-Week Range: $20.26-$29.25.
* Snapshot: Finning sells, rents, finances and services Caterpillar and complementary equipment on three
continents. Its principal markets are Western Canada, the United Kingdom and South America. Finning Canada is based in Edmonton.
* CEO: Nicholas Lloyd.
* Head Office: Vancouver.
* Vital Stats: Current Price/Earnings Ratio, 14.3; Revenue (last 12 mos), $3.2 billion; 5-Yr Revenue Growth, 7.0%; Profit (last 12 mos), $132.3 million; 5-Yr Profit Growth, 41.7%; Market Cap, $11.83 billion; Shares Outstanding, 74.51 million; Dividend Yield, 1.47%.
* Aitken’s View: “Their principal business is Caterpillar dealerships. Alberta, in particular, is a growing market for them because Caterpillar equipment is used in oilsands mining, so we expect more Caterpillar equipment to be used in oilsands mining as we go through the balance of this decade.
“This is a story that gives investors exposure to the resource sector, from copper mining in South America to the oilsands mining in Northern Alberta. But they’re not just at the mercy of the ups and downs of
commodity prices. They’re servicing clients over a longer time period.”
* Risk Rating: Medium.
* Web watch: www.finning.com
* Aitken’s Edge Record: +10.2%. Best Pick: Kingsway Financial (KFS-TSX) +34.9%. Worst Pick: Magna International (MG.A-TSX) -7.9%.
* Disclosure: Aitken says he owns shares in the Bissett Canadian Equity Fund in which the featured stocks are held.