Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese auto parts provider China Automotive Systems (Nasdaq: CAAS ) has received a distressing two-star ranking.
With that in mind, let's take a closer look at China Automotive's business and see what CAPS investors are saying about the stock right now.
China Automotive facts
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Headquarters (Founded)
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Jing Zhou City, China (2003)
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Market Cap
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$566.4 million
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Industry
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Auto parts
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Trailing-12-Month Revenue
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$210.1 million
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Management
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Co-Founder/CEO Qizhou Wu
CFO Jie Li
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Return on Assets (Average, Past 3 Years)
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7.3%
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1-Year Return
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680%
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Cash/Debt
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$45.9 million / $66.3 million
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Other Auto Parts Alternatives
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Johnson Controls (NYSE: JCI )
BorgWarner (NYSE: BWA )
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CAPS Members Bullish on CAAS Also Bearish on
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Vale (NYSE: VALE )
Aluminum Corp. of China (NYSE: ACH )
Apple (Nasdaq: AAPL )
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CAPS Members Bearish on CAAS Also Bullish on
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Canadian Solar (Nasdaq: CSIQ )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 15% of the 322 members who have rated China Automotive believe the stock will underperform the S&P 500 going forward. These bears include topsecret09 and All-Star vanamonde, who is ranked in the top 15% of our community.
Late last month, topsecret09 offered Fools solid reasons to steer away from the stock:
Heavy insider selling lately. Stock is near all time highs. … Just cannot see too much more upside here. This one is fully valued at these levels, and that does not leave too much room for error.
In a pitch from last week, vanamode adds some insider insight of his own:
Chart running through the roof, good earnings report on November 12 with projected 40% revenue growth … So why are the insiders selling, selling, selling after the report?
A little-known company from China, 900% over its 52-week low and with such insider dynamics makes you wonder about that second outlook sentence:
***2009 Outlook
The Company expects its revenue to increase by approximately 40% for the year 2009. This target is based on the Company's current contracts from existing customers, which are subject to change. ***
Could we be subjected to some of these changes soon?
What do you think about China Automotive, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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