4-Star Stocks Poised to Pop: General Moly
By
Brian D. Pacampara
August 28, 2009
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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, molybdenum miner General Moly (NYSE: GMO) has earned a respected four-star ranking.
With that in mind, let's take a closer look at General Moly's business and see what CAPS investors are saying about the stock right now.
General Moly facts
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Headquarters (Founded)
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Lakewood, Colo. (1925)
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Market Cap
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$201.2 million
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Industry
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Diversified metals and mining
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Management
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CEO Bruce Hansen (Since 2007)
CFO David Chaput (Since 2007)
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Compound Annual Tangible Book Value Growth (Over Past Three Years)
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57.5%
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Cash / Debt
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$70.3 million / $393,000
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Other Highly Rated Molybdenum Producers
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Thompson Creek Metals (NYSE: TC)
BHP Billiton (NYSE: BHP)
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CAPS Members Bullish on MOLY Also Bullish on
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Vale (NYSE: VALE)
Freeport-McMoRan (NYSE: FCX)
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CAPS Members Bearish on MOLY Also Bearish on
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Monsanto (NYSE: MON)
Trina Solar (NYSE: TSL)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 339 of the 353 members who have rated General Moly -- 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars decrooj and TSIF, both of whom are ranked in the top 10% of our community.
A few months ago, decrooj tapped the stock as a steely opportunity:
Good infrastructure play. Moly is needed to make steel stronger and less corrosive. This is great for rebuilding pipelines and stronger drill bits for deeper oil drilling. The mine will be in full production by next year. … Once the profits roll in for this company it will be huge.
In a pitch from two days ago, TSIF offers a more balanced bullish view:
Thompson Creek … has been in my real life portfolio for some time … General Moly, on the other hand, is set with dates/times hanging over their head when they must make their Mount Hope project operational and they indicate the deadline is in doubt and investors could legally "rebel". In the meantime, cash is dwindling and they have no revenue. So why an upthumb? Well as I said General Moly is speculative and I'm speculating. Molybdenum is an under "respected" metal for which many companies are dependent. Unlike gold, silver and those other shiny metals that [day investors] dream about, Moly has sound uses and demands. Which means? If the General can't get it done, someone else may want their assets.
What do you think about General Moly, 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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