5-Star Stocks Poised to Pop: Euroseas

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Based on the aggregated intelligence of 125,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drybulk shipper Euroseas (Nasdaq: ESEA) 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 woefully lag the market average.

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

Euroseas facts

Headquarters (founded)

Maroussi, Greece (2005)

Market Cap

$143.69 million

Industry

Marine

TTM Revenue

$134.26 million

Management

Chairman/CEO Aristides Pittas (since 2005)
CFO Anastasios Aslidis (since 2005)

Return on Capital (average, last three years)

12.7%

Dividend Yield

18.6%

Competitors

Eagle Bulk Shipping (Nasdaq: EGLE),
Navios Maritime (NYSE: NM)

CAPS members bullish on ESEA also bullish on:

Excel Maritime Carriers (NYSE: EXM),
Diana Shipping (NYSE: DSX)

CAPS members bearish on ESEA also bearish on:

DryShips (Nasdaq: DRYS),
Genco Shipping & Trading (NYSE: GNK)

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

Over on CAPS, 701 of the 721 members who have rated Euroseas -- or 97% -- believe the stock will outperform the S&P 500 going forward. These bulls include CAPS All-Star ImOuttaHere2008 and CleverFoolNY.

Last week, ImOuttaHere2008 brought attention to the stock's bargain-like price (which is up about 12% since): "P/E 2, EBITDA 27.13M / Q, $65M positive current accounts, $122 Market Cap with $46M long debt, TWENTY PERCENT sustainable dividend which management recently maintained commitment to...'That was Easy!'"

In a pitch from earlier last month, CleverFoolNY agrees, tapping Euroseas as a timely opportunity:

Incredibly strong balance sheet, low debt to equity. Management didn't indulge in buying ships when prices were at cyclical highs. They are now well-suited in terms of cash to take advantage of the temporary downturn. Their fleet is highly diversified and the majority of their ships have contracts that should last through the current downturn. Dry bulk and shipping in general will pick up after Obama's infrastructure plan and the Chinese stimulus take full effect. ... I am happy to see that management is capable of putting the long-term interests of the company over short-term satiation of its shareholders.

What do you think about Euroseas, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 125,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

On Jan. 12, 2009, Fool co-founder David Gardner, Jeff Fischer, and their Motley Fool Pro team will accept new subscribers to their real-money portfolio service. Motley Fool Pro is investing $1 million of the Fool's own money in long and short positions in a range of securities, including common stocks, put and call options, and exchange-traded funds (ETFs). They also incorporate proprietary CAPS "community intelligence" data into their research. 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. The Fool's disclosure policy always gets a perfect score.

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11/11/2009 1:19 PM
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