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4-Star Stocks Poised to Pop: 3SBio

Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese biotech company 3SBio (Nasdaq: SSRX  ) has earned a respected four-star ranking.

With that in mind, let's take a closer look at 3SBio's business and see what CAPS investors are saying about the stock right now.

3SBio facts

Headquarters (Founded)

Shenyang, China (1993)

Market Cap

$262 million

Industry

Biotechnology

Trailing-12-Month Revenue

$46.4 million

Management

Co-Founder/CEO Dr. Jing Lou

CFO Bo Tan

Compound Annual Revenue and Net Income Growth (Over Past 5 Years)

32.6% and 66%

Cash/Debt

$107 million / $0

Competitors

Schering-Plough (Now part of Merck (NYSE: MRK  ) )
Kirin Holdings

Key Suppliers

AMAG Pharmaceuticals (Nasdaq: AMAG  )

Life Technologies (Nasdaq: LIFE  )

Other Highly Rated Biotech Stocks

Amgen (Nasdaq: AMGN  )

Gilead Sciences (Nasdaq: GILD  )

Celgene (Nasdaq: CELG  )

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

On CAPS, 95% of the 440 members who have rated 3SBio believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars 00100 and TMFBreakerTAllan, both of whom are ranked in the top 5% of our community.

Late last year, 00100 tapped 3SBio as a healthy way to gain exposure to the Far East: "Huge sales growth rate. No debt. Plenty of cash. Chinese company with connections and dubious products by Western standards. But the approach is successful in light of historical perceptions in China."

In a pitch from two weeks ago, TMFBreakerTAllan follows that bullish line of thinking:

3SBio is one of China's leading maker of biogeneric drugs. ... This company has the ability to partner with established companies like AMAG Pharm. to license drugs to bring to market in China as it recently did for Feraheme, an iron replacement therapy already approved in the USA. 3SBio can continue to expand its revenues in this way as well as developing novel drugs. As long as 3SBio remains profitable in the coming quarters, this company will begin to earn market multiples in line with other profitable biotech companies.

What do you think about 3SBio, 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!

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 3SBio is a Motley Fool Rule Breakers pick. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/8/2012 4:00 PM
SSRX $11.23 Up +0.52 +0.00%
3SBio CAPS Rating: ***
GILD $54.27 Down -0.81 +0.00%
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LIFE $49.73 Up +0.85 +0.00%
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