5-Star Stocks Poised to Pop: General Steel

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Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese steel small cap General Steel (NYSE: GSI) has earned a coveted five-star ranking.

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

General Steel facts

Headquarters (founded)	Beijing, China (1988)
Market Cap	$157.46 million
Industry	Steel
TTM Revenue	$1.35 billion
Management	Chairman/CEO Zuo Sheng Yu CFO John Chen
Compound Annual Revenue Growth (over last five years)	88.2%
Competitors	Jiuquan Iron & Steel Guangdong Shaoguan Iron and Steel
CAPS members bullish on GSI also bullish on	Apple (Nasdaq: AAPL) Vale (NYSE: RIO) American Oriental Bioengineering (NYSE: AOB)
CAPS members bearish on GSI also bearish on	Ford Motor (NYSE: F) General Motors (NYSE: GM) Procter & Gamble (NYSE: PG)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 443 of the 464 members who have rated General Steel -- some 95% -- believe the stock will outperform the S&P 500 going forward. These bulls include gorki1951 and Viking70.

In January, gorki1951 singled out the stock as a solid way to play in China:

Gotta love a company that the Chinese government takes a shine to. They also appear to be the one company that can provide steel to the inland growth that is being pushed. Steel is very expensive to transport and they are in the right place at the right time.

In a pitch from last week, Viking70 manages to stay generally bullish on General Steel:

The numbers behind this company are not all that great. It carries a higher debt load than I prefer to see. It also has a relatively poor ROI. And the [gross margin] is terrible. However, I am betting that the Chinese economic recovery will materialize and the growth opportunities in China will exceed those of most other countries. A low P/E makes the risks worth taking on this stock. Gotta figure management will improve (or am I hoping?).

What do you think about General Steel, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.