Recs

12

5-Star Stocks Poised to Pop: SQM

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Latin fertilizer giant Chemical & Mining Co. of Chile (NYSE: SQM  ) has earned a coveted five-star ranking.

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

SQM facts 

Headquarters (Founded)

Santiago, Chile (1968)

Market Cap

$10.14 Billion

Industry

Fertilizers and Agricultural Chemicals

Trailing-12-Month Revenue

$1.77 Billion

Management

CEO Patricio Contesse (Since 1990)

CFO Ricardo Ramos (Since 1994)

Return on Equity (Average, Past Three Years)

22.7%

Dividend Yield

3.1%

Competitors

PotashCorp (NYSE: POT  )

Agrium (NYSE: AGU  )

CAPS Members Bullish on SQM Also Bullish on

Vale (NYSE: VALE  )

Apple (Nasdaq: AAPL  )

CAPS Members Bearish on SQM Also Bearish on

Mosaic (NYSE: MOS  )

First Solar (Nasdaq: FSLR  )

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

On CAPS, 1,055 of the 1,081 members who have rated SQM -- 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include caspians and strat91.

Last year, caspians reminded our community that SQM "shows big potential, not because it is a leading fertilizer company but because it is the world leader in Lithium supply." Our CAPS member concludes: "If you look at all the companies that wish to develop electric vehicles, it is clear that there will be a supply shortage of Lithium during the next 5 to 10 years."

In a more recent pitch from April, strat91 helps recharge that bullish reasoning:

If lithium battery technology becomes the favored technology for hybrid vehicles, SQM is in one of the best positions to fill the lithium demand. Lithium batteries weigh considerably less than the NiMH batteries currently used in the Prius. I'm not sure if the hybrid or the electric car is a viable long term solution, but it will be in demand for several years to come.

What do you think about SQM, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 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. Apple is a Motley Fool Stock Advisor selection. The Fool's disclosure policy always gets a perfect score.


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