5-Star Stocks Poised to Pop: Simcere Pharmaceutical

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese drugmaker Simcere Pharmaceutical (NYSE: SCR) has earned a coveted five-star ranking.

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

Simcere facts

Headquarters (founded)	Nanjing, China (1995)
Market Cap	$429.7 million
Industry	Pharmaceuticals
TTM Revenue	$260.1 million
Management	Co-Founder/CEO Jinsheng Ren CFO Zhigang Zhao
Return on Equity (average, last two years)	14.3%
Cash / Debt	$93.1 million / $10 million
Other Highly Rated Pharmaceutical Stocks	Pfizer (NYSE: PFE) Merck (NYSE: MRK) Novartis (NYSE: NVS)
CAPS Members Bullish on SCR Also Bullish on	General Electric (NYSE: GE) Suntech Power (NYSE: STP)
CAPS Members Bearish on SCR Also Bearish on	Huaneng Power (NYSE: HNP)

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

Over on CAPS, fully 234 of the 240 members who have rated Simcere -- some 97.5% -- believe the stock will outperform the S&P 500 going forward. These bulls include oxdeming and All-Star mrindependent, who is ranked in the top 2% of our community.

Two weeks ago, oxdeming tapped Simcere as a Far East way to get into drugs:

[L]ow valuation; great beneficiary of health reform in China; government strong support; cost-effectiveness in rolling out innovative medicine; leading performer in Chinese pharm sector.

In a pitch from two days ago, mrindependent elaborates:

Simcere Pharmaceutical is a rapidly growing generic pharmaceuticals company located in China. The company has tripled its revenues in the last 5 years and seems poised for future growth. Price has dropped recently due to combination of a China stock market pullback and a recent earnings miss. As a result, this extremely attractive company is available for just 1.44 times book value and 15 times estimated 2009 earnings. The balance sheet is sold with approximately $0.70 per share in net cash.

What do you think about Simcere, 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.