4-Star Stocks Poised to Pop: TBS International

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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 TBS International (Nasdaq: TBSI) has earned a respectable four-star ranking.

Let's take a closer look at TBS' business,and see what CAPS investors are saying about the stock right now.

TBS facts

Headquarters (Founded)

Hamilton, Bermuda (1993)

Market Cap

$355.74 Million

Industry

Marine

Trailing-12-Month Revenue

$589 Million

Management

Founder/Chairman/CEO Joseph Royce

CFO Ferdinand Lepere

Return on Equity (Average, Past Three Years)

32.4%

Competitors

Tidewater (NYSE: TDW)

Kirby (NYSE: KEX)

CAPS Members Bullish on TBSI Also Bullish on:

Excel Maritime Carriers (NYSE: EXM)

Vale (NYSE: RIO)

CAPS Members Bearish on TBSI Also Bearish on:

DryShips (Nasdaq: DRYS)

Citigroup (NYSE: C)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS. 

On CAPS, 151 of the 171 All-Star members who have rated TBS -- 88% -- believe the stock will outperform the S&P 500 going forward. These bulls include daharkleroad and TheHuney.

Last month, daharkleroad tapped TBS as a tasty bet during the downturn: "With sales growing at over 40% and income growing at nearly 120% and [profit margins] nearly 33% in a recession, imagine what will happen when things improve."

Two days ago, TheHuney followed that contrarian line of thinking:

Drybulkers are obviously suffering right now, but my motto when it comes to cyclical stocks - buy in when everyone is afraid to touch these stocks. … [W]ith a strong balance sheet, I like them to survive the current economic climate and this stock should see a big jump in the next boom phase. It sold for nearly $60 in the summer of '08. Even if it only gets to $40 and it takes 10 years to get there, that's still a nearly 30% annually - not too shabby, eh?

What do you think about TBS, 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 get started!

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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.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On February 05, 2009, at 2:27 PM, GMSInvesting wrote:

    From about $9 a share to $40 looks more like 17% growth annually to me over ten years.

  • Report this Comment On February 06, 2009, at 11:39 AM, imacg5 wrote:

    All the numbers you are using, are from earnings last summer. Do you have any idea what has happened to shipping since then? In a few weeks you will have a new set of earnings and guidance to work with.

    Thankfully, TBSI has a niche in the market which will be better than most other bulk companies.

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DocumentId: 825765, ~/Articles/ArticleHandler.aspx, 12/3/2009 4:12:31 AM

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Related Tickers

12/2/2009 4:01 PM
KEX $34.30 Up +0.22 +0.65%
Kirby Corp CAPS Rating: ***
EXM $7.21 Down -0.23 -3.09%
Excel Maritime Car… CAPS Rating: *****
TDW $45.68 Up +0.03 +0.07%
Tidewater, Inc. CAPS Rating: *****
RIO $17.42 Down +0.00 +0.00%
Vale CAPS Rating: *****
DRYS $6.30 Down -0.02 -0.32%
DryShips, Inc. CAPS Rating: ***
C $4.10 Down +0.00 +0.00%
Citigroup, Inc. CAPS Rating: **
TBSI $8.04 Down -0.05 -0.62%
TBS International… CAPS Rating: *****

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