5-Star Stocks Poised to Pop: North American Palladium

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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, special-metals miner North American Palladium (NYSE: PAL) has earned a coveted five-star ranking.

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

North American Palladium facts

Headquarters (founded)

Toronto, Canada (1968)

Market Cap

$146 million

Industry

Precious Metals and Minerals

TTM Revenue

$173.4 million

Management

President/CEO William Biggar
CFO G. Fraser Sinclair

Compound Annual Revenue Growth (over last three years)

21.6%

Competitors

Stillwater Mining (NYSE: SWC)

CAPS members bullish on PAL also bullish on:

Vale (NYSE: RIO)
Apple (Nasdaq: AAPL)
Freeport McMoRan (NYSE: FCX)

CAPS members bearish on PAL also bearish on:

General Motors (NYSE: GM)
PMI Group (NYSE: PMI)

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

Over on CAPS, 863 of the 895 members who have rated North American Palladium -- or 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include bottomfeedr and kkconway.

Last week, bottomfeedr identified a few of the stock's "catalysts" for our community:

Catalyst metals are rare, and will be utilized in transforming whatever green energy that is developed. [Platinum Group Metals] have been hammered, and this stock has a track record of bouncing with the price of [Platinum Group Metals].

In a pitch from four days later, kkconway expands on the company's long-term tailwinds:

People will start buying cars again someday. [North American Palladium] will supply the palladium for their catalytic converters. Russia's reserves are depleting, and [North American Palladium] has a P/Book of 0.4 at today's price, and plenty of cash to wait out the demand trough.

What do you think about North American Palladium, 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.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple is a Motley Fool Stock Advisor pick. 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 06, 2009, at 12:51 PM, JJ2000426 wrote:

    PAL is a palladium mining company, another palladium mining company is SWC. These two are the ONLY mining companies in the whole world who produce palladium as the main product.

    The noble precious metal palladium has extremely bullish fundamentals, due to events in Russia and in South Africa. That makes SWC and PAL the best mining stocks to buy. You must read this to understand how boolish the supply/demand fundamentals of palladium is:

    http://tinyurl.com/bdzxhp

    That article is one of the most popular article on Seeking Alpha.

  • Report this Comment On February 06, 2009, at 3:27 PM, dividendgrowth wrote:

    Have you ever looked at PAL's balance sheet?

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