Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, mining equipment maker Bucyrus International (Nasdaq: BUCY ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Bucyrus' business and see what CAPS investors are saying about the stock right now.
Bucyrus facts
|
Headquarters (Founded)
|
South Milwaukee, Wisc. (1880)
|
|
Market Cap
|
$2.6 billion
|
|
Industry
|
Construction machinery
|
|
Trailing-12-Month Revenue
|
$2.7 billion
|
|
Management
|
CEO Timothy Sullivan (since 2004)
CFO Craig Mackus (since 2004)
|
|
Return on Equity (Average, Past 3 Years)
|
22.3%
|
|
Cash/Debt
|
$104.6 million/$596.5 million
|
|
Competitors
|
Joy Global (Nasdaq: JOYG )
CNH Global (NYSE: CNH )
|
|
CAPS Members Bullish on BUCY Also Bullish on
|
Transocean (NYSE: RIG )
PotashCorp (NYSE: POT )
|
|
CAPS Members Bearish on BUCY Also Bearish on
|
Citigroup (NYSE: C )
Goldman Sachs (NYSE: GS )
|
Sources: Capital IQ (a division of Standard & Poor's), Yahoo! Finance, and Motley Fool CAPS.
On CAPS, 98.1% of the 313 All-Star members who have rated Bucyrus believe the stock will outperform the S&P 500 going forward. These bulls include TMFBreakerThiel and TSIF, both of whom are ranked in the top 5% of our community.
Just last week, TMFBreakerThiel tapped Bucyrus as a magnificent multipurpose metals play: "This is how you can be bullish on drilling and mining, but agnostic about what is drilled or mined, or where. Sweet!"
In a pitch from five days ago, TSIF expands on the stock as a potent "picks and shovels" pick. Here's an excerpt:
Bucyrus has very good potential as the economy strengthens and decent potential even if the economy lags slower than the "green shootists" believe. ... Currently P/S is sub 1, P/B 2, profit margins 10%, operating margins of 16%. ROA/ROE well above average. ... Mining equipment needs to run 24x7. You might defer buying new, but you won't defer whatever it takes to keep it running. Broken equipment means idle mines, idle works, and losses that cannot be made up later. Finally, with the price of metals, gold, copper, etc, returning to normal, (or spiking above normal), mines will be encouraged to add equipment to ramp production.
What do you think about Bucyrus, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
RSS Headlines
Fool UK