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5-Star Stocks Poised to Pop: China Precision Steel

Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small-cap steel processor China Precision Steel (Nasdaq: CPSL  ) has earned a coveted five-star ranking.

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

China Precision facts

Headquarters

Sheung Wan, Hong Kong

Market Cap

$118.3 million

Industry

Steel

Trailing-12-Month Revenue

$79.1 million

Management

Chairman/CEO Hing Li Wo

CFO Tak Tai Li

Compound Annual Revenue Growth (over last two years)

31.3%

Other Highly Rated Steel Stocks

POSCO (NYSE: PKX  )

ArcelorMittal (NYSE: MT  )

CAPS Members Bullish on CPSL Also Bullish on

Aluminum Corp. of China (NYSE: ACH  )

Apple (Nasdaq: AAPL  )

CAPS Members Bearish on CPSL Also Bearish on

Microsoft (Nasdaq: MSFT  )

Centex (NYSE: CTX  )

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

Over on CAPS, some 97% of the 637 members who have rated China Precision believe the stock will outperform the S&P 500 going forward. These bulls include MikeBobulinski and All-Star TSIF, who is ranked in the top 1% of our community.

In May, MikeBoublinski singled out the small cap as a steely way to play the Far East:

Niche market steel company in China. Given China's potential and the fact that [China Precision] is sitting in the middle of a bunch of pent up spending, I am thinking it is only a matter of time before [China Precision] pops back up to near the $10 per share mark.

In a pitch from last week, TSIF gets a bit more precise about China Precision's potential:

China Precision Steel, as one might expect is not recession resistant. The stimulus and GDP in China however is vastly stronger than here in the US. ... The cost of moving materials and finished products helps make China Precision a strong competitive play for the regional demands. China Precision's specialty and custom parts are required in a stimulus play. ... A third cold rolling plant should be coming online shortly, and while the balance of capacity with the economy can be tricky, China Precision Steel is poised to roll out the steel and roll up the revenue.

What do you think about China Precision, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. POSCO is a Motley Fool Income Investor pick, Microsoft is an Inside Value choice, and Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.


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5/25/2012 3:50 PM
CPSL $0.27 Down +0.00 -0.18%
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