4-Star Stocks Poised to Pop: Baltic Trading

Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, drybulk vessel owner Baltic Trading (NYSE: BALT  ) has earned a respected four-star ranking.

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

Baltic Trading facts

Headquarters (Founded)	New York (2009)
Market Cap	$208 million
Industry	Marine
Trailing-12-Month Revenue	$32.56 million
Management	Chairman Peter Georgiopoulos CEO/CFO John Wobensmith
Trailing-12-Month Return on Equity	5.8%
Cash/Debt	$5.8 million / $101.3 million
Dividend Yield	7.4%
Competitors	DryShips (Nasdaq: DRYS  ) Eagle Bulk Shipping (Nasdaq: EGLE  )

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

On CAPS, 97% of the 192 members who have rated Baltic Trading believe the stock will outperform the S&P 500 going forward. These bulls include dh1000 and iwams.

Earlier this year, dh1000 listed several of Baltic Trading's positives: "New ships below book value; range of ship sizes; focuses on spot market; low debt and good dividend potential."

In fact, Baltic currently boasts a debt-to-equity of just 35%. That's substantially lower than that of rivals like DryShips (69.8%) and Eagle Bulk (175.4%), as well as its parent company Genco Shipping & Trading (NYSE: GNK  ) (132.7%).

CAPS member iwams elaborates on the income opportunity:

Already profitable and growing. Short term negative trend due to shipping oversupply but should play out fine in next 2-3 years. It is independent [subsidiary] of Genco Shipping and leveraging their contacts and management experience without exposure to any of their debts.

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