Whether it's the corporate lunchroom, your cubicle, or the local watering hole after work, there are regular places we gather to discuss news, sports or -- if you're like us -- stocks. Here at Motley Fool CAPS, we gather around the virtual water cooler daily to rate stocks and delve into their merits as investments.
Our 135,000-strong CAPS community -- where members give the thumbs-up or thumbs-down to some 5,300 stocks -- has earned its points by seeking out the businesses it thinks will outperform the market. Below we'll take a look at some of the top stocks in the CAPS universe that you're talking about the most and whether you think they'll continue their winning ways.
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Stock
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CAPS Rating (Out of 5)
|
No. of Calls
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Outperform Calls
|
|
Abbott Labs (NYSE: ABT )
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****
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1,473
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94%
|
|
Cameco (NYSE: CCJ )
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*****
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1,432
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97%
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Ceradyne (Nasdaq: CRDN )
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****
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1,435
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97%
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|
Sun Hydraulics
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*****
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1,435
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99%
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|
Vonage (NYSE: VG )
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*
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1,427
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26%
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A tall drink of water
With uranium miner Cameco setting the pace with its latest earnings report, will it now turn its attention to making the acquisition it mused about earlier this year?
Cameco raised $460 million back in March, just before piquing everyone's interest in potential merger moves. Its current cash position is $349 million with long-term debt of $811 million, giving it a net debt of $462 million. CEO Jerry Grandey said he wanted to make a purchase in the $1 billion to $2 billion range, meaning he'd have to shore up his finances a little more before he could move forward. Cameco might be preparing to do just that. In the quarterly report, the uranium giant said it was filing a shelf offering for up to $1 billion in senior debt, the proceeds of which would be used to refinance its current debt holdings.
Grandey told analysts not to think any M&A activity was imminent just because of the filing, but acquisition targets are not so plentiful in the industry and they're not going to get any cheaper if an economic rebound begins in earnest.
Because of their size, BHP Billiton (NYSE: BHP ) and Rio Tinto (NYSE: RTP ) are out of the question as possible targets, but maybe USEC (NYSE: USU ) , which has seen a quarter of its value melted after the Energy Department denied its loan request, might be a possibility. Considering USEC said in the aftermath it might have to consider "strategic alternatives," it's plausible.
CAPS member rlbenner says when it comes to Cameco, he who hesitates is lost: "The best managed uranium company with a fist full of cash and on the lookout for new acquisitions once the uranium market starts the upward move. You blink on this one and you will pay $50/share next year."
Another shot of reality
Abbott Labs has been busy making acquisitions, too, to bolster its infant and adult nutrition products. It purchased the baby and adult nutrition business of Indian biopharmaceutical Wockhardt for $130 million with an eye firmly on expanding its current line of formula and supplement products to the Indian market. Abbott, the maker of Similac baby formula, splits its nutritional segment in favor of the kids 55% to 45%, but gains half its revenues in this division from international markets. The Wockhardt purchase is a smart move to enhance that line.
Highly rated CAPS All-Star intlvaw says keeping its pharmaceutical business balanced means it will be a survivor regardless of the outcome of the health-care reform debate: "Excellent pipeline, nutritional business to balance - capable of cutting R&D to reflect any US health care policies that emerge -- Cheap."
Gather 'round
The CAPS community is like trying to take a sip from a fire hose. With so many good opinions about today's top companies why not grab a pointy paper cup from the dispenser and join us at the Motley Fool CAPS water cooler where your input can help guide other investors to stocks with bright prospects for growth? Read a company's financial reports, scrutinize key data and charts, and examine the comments your fellow investors have made -- all from a stock's CAPS page.
Sign up today for the completely free service and let us hear what you have to say about the great and almost-great companies that interest you.
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