5-Star Stocks Poised to Pop: Rockwood Holdings

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, specialty chemical company Rockwood Holdings (NYSE: ROC  ) has earned a coveted five-star ranking.

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

Rockwood facts

Headquarters (founded) Princeton, N.J. (2000)
Market Cap $3.7 billion
Industry Specialty chemicals
Trailing-12-Month Revenue $3.6 billion
Management Chairman/CEO Seifi Ghasemi
CFO Robert Zatta
Return on Equity (average, past 3 years) 19.3%
Cash/Debt $343.4 million / $1.8 billion
Dividend Yield 3%
Competitors DuPont
FMC
PolyOne

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the 354 members who have rated Rockwood believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star TMFDeej, brought the bargain opportunity to our community's attention:

This is one of Alex Roeper's ideas from the Value Investing Congress. Lithium, a key battery component, is one of this cheap specialty chemical company's products. It will benefit as manufacturers introduce more hybrid vehicles.

Furthermore, he claims that the stock trades largely based on fluctuations in the Titanium Dioxide market, despite the fact that it only accounts for 15% of Rockwood's business. Rockwood actually plans to spin-off the TiO2. This move will help to lower its debt and cedouple it from the swings in the price of this commodity.

If you want market-topping returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its five-star rating, Rockwood may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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