5-Star Stocks Poised to Pop: VASCO

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, security software specialist VASCO Data Security International (Nasdaq: VDSI) has earned a coveted five-star ranking.

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

VASCO facts

Headquarters (founded)

Terrace, Ill. (1996)

Market Cap

$280.03 million

Industry

Security software and services

Trailing-12-Month Revenue

$127.2 million

Management

CEO Kendall Hunt (since 2002)
COO Jan Valcke (since 2002)

Compound Annual Revenue and Net Income Growth (over last five years)

39.9% and 51.6%

Competitors

ActivIdentity (Nasdaq: ACTI)
Entrust

CAPS Members Bullish on VDSI Also Bullish on

Apple (Nasdaq: AAPL)
General Electric (NYSE: GE)
Cemex (NYSE: CX)

CAPS Members Bearish on VDSI Also Bearish on

Ford (NYSE: F)
First Marblehead (NYSE: FMD)

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

Over on CAPS, 658 of the 665 members who have rated VASCO -- or 99% -- believe the stock will outperform the S&P 500 going forward. These bulls include tmarkjones and Babachrono, both of whom are ranked in the top 20% of our community.

Just yesterday, tmarkjones reminded our community that VASCO "is a growth company in a market that will soon be growing again." Our CAPS All-Star concludes: "We're on the backend of the banking crisis and [VASCO] is well positioned to take advantage of the resumption of economic growth in 2010."

In a pitch from last month, Babachrono helped Fools feel even more secure:

25% insider and only 38% institutional ownership. No LT debt and a huge cash reserve, paid off a large chunk of payables and still have over $50M cash on hand is 1/6 of their market cap. They have good products and total security solutions from software/programs to the servers that they all run on. Many companies have been cutting spending, and I feel several will find their decision to cut in security will bit them and force them to come running to [VASCO] as the economy turns and they find themselves in need up updates and making cash again.

What do you think about VASCO, 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 simply click here to get started.

Like this article? Get our best articles delivered direct to your inbox at no cost. Sign up for Foolwatch Weekly by entering your email below.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. VASCO, Apple, and Cemex are Motley Fool Stock Advisor selections. Cemex is also a Global Gains pick, and the Fool owns shares of it. The Fool's disclosure policy always gets a perfect score.

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