Recs

10

5-Star Stocks Poised to Pop: General Steel

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.

Best Odds in the Universe!
If you're interested in a 98.79% chance at beating the market... and a 70.84% chance at DOUBLING the market's return – Motley Fool Supernova could be just what you're looking for. And get this: We arrived at these odds from 10,000 random back-tested portfolios composed of Motley Fool Co-founder David Gardner's personal stock picks.

It's why David recently handpicked a small team of world-class portfolio managers. You see, he thinks these odds can get even better! And he'd like to prove it to you...

Simply enter your email address. And the answer to the question everybody is asking will be delivered to your inbox!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. General Steel and American Oriental Bioengineering are Motley Fool Global Gains selections. American Oriental is also a Motley Fool Hidden Gems selection. Apple is a Stock Advisor selection, while Procter & Gamble is an Income Investor pick. The Fool owns shares of Procter & Gamble and American Oriental Bioengineering. The Fool's disclosure policy always gets a perfect score.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

DocumentId: 882056, ~/Articles/ArticleHandler.aspx, 2/14/2012 5:49:29 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 12,878.28 4.24 0.03%
S&P 500 1,350.50 -1.27 -0.09%
NASD 2,931.83 0.44 0.02%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

2/14/2012 3:59 PM
GSI $1.07 Down -0.02 -1.83%
General Steel Hold… CAPS Rating: ***
GM $25.40 Up +0.06 +0.24%
General Motors Com… CAPS Rating: **
PG $64.48 Up +0.25 +0.39%
The Procter & Gamb… CAPS Rating: *****
RIO $58.62 Down -2.03 -3.35%
Rio Tinto plc (ADR… CAPS Rating: ****
AAPL $509.46 Up +6.86 +1.36%
Apple CAPS Rating: ***
AOB $0.83 Up +0.01 +1.21%
American Oriental… CAPS Rating: ***
F $12.48 Down -0.06 -0.48%
Ford CAPS Rating: ****

Advertisement