5-Star Stocks Poised to Pop: Brookfield Asset Management

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Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, global holding company Brookfield Asset Management (NYSE: BAM) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Brookfield's business, and see what CAPS investors are saying about the stock right now.

Brookfieldfacts

Headquarters

Calgary, Alberta

Market Cap

$10.6 billion

Industry

Asset Management

TTM Revenue

$12.4 billion

Management

CEO Bruce Flatt (since 2002)

CFO Brian Lawson (since 2002)

Return on Equity (average last three years)

16.4%

Competitors

Franklin Resources, T. Rowe Price

CAPS members bullish on BAM also bullish on

General Electric (NYSE: GE),

Cemex

CAPS members bearish on BAM also bearish on

Wells Fargo (NYSE: WFC),

Citigroup (NYSE: C)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, some 96% of the 215 All-Star members who have rated Brookfield believe the stock will outperform the S&P 500 going forward. These All-Star bulls include safevalue and TMFMattyA, both of whom are ranked in the top 10% of our community.

In late June, safevalue noted that Brookfield is "involved in high quality long life assets, that produce free cash flows ... the company has a great CEO who is value and investor conscience ( Bruce Flatt)."

An earlier pitch from TMFMattyA in March shares that bullish sentiment, highlighting the stock's cheapish valuation (which, like everything else, is even cheaper today):

Finally, BAM is on sale. You just don't get too many opportunities to invest in a management team like this at a reasonable price. This company controls a vast portfolio of quality, stable, cash-producing assets, and features a management team that really knows how to allocate capital prudently. Like [Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B)] and [Markel (NYSE: MKL)], I think this is one of those few companies that you can hold onto forever.

What do you think about Brookfield, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

In the coming weeks, Fool co-founder David Gardner and his Motley Fool Pro team will invest $1 million in a portfolio designed to help you make money in any market. The service, which just launched, will rely heavily on proprietary CAPS "community intelligence" data to establish long and short positions in a broad range of securities, including common stocks, publicly traded put and call options, and exchange-traded. To learn more about Motley Fool Pro and to receive a private invitation to join, simply enter your email address in the box below.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Brookfield and Cemex are Motley Fool Global Gains recommendations. Cemex and Berkshire Hathaway are Stock Advisor picks. Berkshire and Markel are Inside Value selections. The Fool owns shares of Cemex, Berkshire, and Markel. The Fool's disclosure policy always gets a perfect score.

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11/6/2009 4:00 PM
WFC $27.12 Down -0.17 -0.62%
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