News from The Globe and Mail

Energy junior flattens the competition

DAVID PYETTE

00:00 EST Thursday, January 03, 2008

A junior oil company propelled hedge fund manager Jean-François Tardif to victory over nine other competitors in the 2007 My One and Only stock-picking contest.

Mr. Tardif led the competition from the first quarter with Rally Energy Corp., which chalked up an insurmountable lead when the junior oil company was sold in September to an Egyptian private equity firm for $7.30 a share, a gain of 83.4 per cent since the start of the year.

When the manager of the Sprott Opportunities Hedge Fund LP chose the Calgary-based company, which is drilling for oil in Egypt and natural gas in Pakistan, he said one of his reasons for picking the stock was that it "could be a takeover candidate." That buyout enabled Mr. Tardif, to rally, so to speak, from last place in the 2006 contest when he picked an income trust.

Mr. Tardif gets to sip from The Globe and Mail victory cup - a coffee mug actually - and savour his victory in the competition, in which each participant must pick a stock trading at a minimum of $1 and hold it for the duration of the year.

We opened the 2007 invitational contest - the 11th annual competition - to stocks trading on the S&P 500 index and the Nasdaq 100, as well as those trading on the Toronto Stock Exchange. All had to have a market capitalization of at least $100-million at the beginning of the year. The results were tabulated on a total-return (dividends included) basis.

The only U.S. stock in the competition, Intel Corp., propelled University of Alberta fourth-year commerce student Mike Clark into a solid second place. The giant computer chip maker climbed 34.2 per cent on a total-return basis to $26.66 (U.S.).

These were the only two stocks to beat the benchmark S&P/TSX composite index's 9.8-per-cent total return for the year.

Calian Technologies Ltd. (CTY-TSX), the choice of Chris Fernyc, former portfolio manager of Bissett Small Cap Fund and Bissett Microcap Fund, rose 8.7 per cent on a total-return basis. The technology services provider's stock, which yields 3.6 per cent, closed the quarter at $13.25.

High-school stock-picking champ Felix Cheung of Vancouver's David Thompson Secondary School finished neck and neck with Mr. Fernyc. Mr. Cheung's pick of Connacher Oil and Gas Ltd. (CLL-TSX) rose 8.6 per cent to $3.79. Felix was a winner of the Wilfrid Laurier University stock-picking contest for high-school students across the nation.

The contest has not been as kind to the bottom five contestants.

Adrian Mastracci, portfolio manager at KCM Wealth Management Inc. in Vancouver, chose junior gold miner Nevsun Resources Ltd. (NSU-TSX). The stock sank 9.8 per cent to $2.30.

Raymond James Ltd. sales representative Ben Weld's pick, zinc miner HudBay Minerals Inc. (HBM-TSX), dropped 10.7 per cent to $19.50. It had risen 17.9 per cent to $25.75 (Canadian) at the end of the third quarter.

Wi-LAN Inc. (WIN-TSX), chosen by Yola Edwards of Zawadzinski Edwards & Associates, sank 45 per cent. Ms. Edwards, an independent market strategist and technical analyst, considered the symbol a good omen in making her pick but it turned out anything but. The Ottawa-based company, which licenses intellectual property applicable to products providing access in the communications and electronics markets, surged in February to $7.97 but closed the year at $2.56.

Peter Grandich, editor of the Grandich Letter, who earned his stripes on Wall Street by predicting both the 1987 crash and the 2000 meltdown, ended the year down 71 per cent with his pick, emerging gold producer La Mancha Resources Inc. (LMA-TSX). The stock sank to just 43 cents.

Cork Exploration Inc. (CRK-TSX), the pick of Peter Linder, managing director with Calgary's Delta One Capital Partners Inc. The stock plummeted 77.9 per cent from the beginning of the year to 83 cents Nov. 16 before it entered a reverse takeover with Profound Energy Inc.

Pulling up the rear of the 2007 race was house player Lisa Oake, formerly a host on Business News Network, who picked Tahera Diamond Corp. (TAH-TSX), which operates a mine in Nunavut. The stock tanked 93.3 per cent to just 8 cents.

RALLY ENERGY WINS THE 2007 RACE FOR SPROTT'S TARDIF

Rally Energy, which was taken over in the fall, propelled Sprott Asset Management hedge fund manager Jean-François Tardif to victory in The Globe's 11th annual My One and Only stock-picking contest.

Jean-Francois Tardiff

UP 83.4%

Rally Energy, RAL-TSX

Oct. 2 Close: $7.30

Mike Clark

UP 34.2%

Intel, INTC-Nasdaq

2007 close: $26.66 (U.S.)

Chris Fernyc

UP 8.7%

Calian Technologies, CTY-TSX

2007 close: $13.25

Felix Cheung

UP 8.6%

Connacher Oil & Gas, CLL-TSX

2007 close: $3.79

Adrian Mastracci

DOWN 9.8%

Nevsun Resources, NSU-TSX

2007 close: $2.30

Ben Weld

DOWN 10.7%

Hudbay Minerals, HBM-TSX

2007 close: $19.50

Yola Edwards

DOWN 45%

Wi-Lan, WIN-TSX

2007 close: $2.56

Peter Grandich

DOWN 71%

La Mancha Resources, LMA-TSX

2007: 43¢

Peter Linder

DOWN 77.9%

Cork Exploration, CRK-TSX

Nov. 16 Close: 83¢

Lisa Oake

DOWN 93.3%

Tahera Diamond, TAH-TSX

2007 close: 8¢

SOURCE: THOMSON DATASTREAM AND BLOOMBERG FINANCIAL SERVICES

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