Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese chemical company Chemspec International (NYSE: CPC ) has earned a coveted five-star ranking.
With that in mind, let's take a closer look at Chemspec's business and see what CAPS investors are saying about the stock right now.
|Headquarters (Founded)||Shanghai, China (1996)|
|Market Cap||$271.9 million|
|Trailing-12-Month Revenue||$149.9 million|
Chairman/CEO Jianhua Yang
CFO Zixin Wang
|Trailing-12-Month Operating Margin||26.8%|
|Cash/Debt||$22.5 million / $13.5 million|
Balchem (Nasdaq: BCPC )
Sigma-Aldrich (Nasdaq: SIAL )
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 99% of the 124 members who have rated Chemspec believe the stock will outperform the S&P 500 going forward. These bulls include Nestorvestor and All-Star mrindependent, who is ranked in the top 2% of our community.
Late last year, Nestorvestor offered some thoughts on CEO Jianhua Yang's recent proposal to take Chemspec private: "The company board received an buyout offer from the CEO, who already owns more than 50% of stock, for $8 per ADS. ... I think this is a lowball offer. ... If we take to account the pure cash flow and ROE the company should be valued near $14."
In fact, Chemspec currently trades at a forward P/E of just 7.4. That's a clear discount to listed rivals Balchem (25.2) and Sigma-Aldrich (17.1), as well as much larger chemical plays like Ashland (NYSE: ASH ) (11.9), Dow Chemical (NYSE: DOW ) (11.0), and DuPont (NYSE: DD ) (13.1).
CAPS All-Star mrindependent elaborates on the bull case:
This well positioned Chinese manufacturer of flourinated chemicals enjoys a diverse customer base and thrives by tailoring its products to the specific needs of its customers. The CEO has offered to purchase the company for $8.00 per ADR, but this offer seems way too low. Although I don't like to see the CEO pushing out other shareholders, I do applaud his commitment to the firm. The company's balance sheet is cash rich. ... I am reassured that the auditor is KPMG.
What do you think about Chemspec, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!