Based on the aggregated intelligence of 145,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese travel-services provider Universal Travel Group (NYSE: UTA ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Universal Travel's business and see what CAPS investors are saying about the stock right now.
Universal Travel facts
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Headquarters
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Shenzhen, China
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Market Cap
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$177 million
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Industry
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Hotels, restaurants, and leisure
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Trailing-12-Month Revenue
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$102 million
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Management
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CEO Jiang Jiangping (since 2006)
CFO Yizhao Zhang (since 2009)
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Return on Equity (Average, Past 3 Years)
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24.1%
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Cash/Debt
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$23.5 million / $0
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Competitors
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Ctrip.com International (Nasdaq: CTRP )
eLong (Nasdaq: LONG )
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CAPS Members Bullish on UTA Also Bullish on
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American Oriental Bioengineering (NYSE: AOB )
GigaMedia (Nasdaq: GIGM )
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CAPS Members Bearish on UTA Also Bearish on
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Intel (Nasdaq: INTC )
Verizon Communications (NYSE: VZ )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 96.5% of the 86 All-Star members who have rated Universal Travel believe the stock will outperform the S&P 500 going forward. These bulls include SpartanMAC and mrindependent, who is ranked in the top 1% of our community.
Last fall, SpartanMAC touched on the stock's solid fundamentals: "There is high inside ownership here, strong revenue / EPS growth, high ROE, and a solid balance sheet."
In a pitch from two days ago, mrindependent explained why Universal Travel wouldn't stay grounded forever. Here's an excerpt:
This company's stock price has declined 30% since November. I think the reason for the decline is concern over share dilution as a result of the company's direct offering of 2.2 million shares at $9 per share in December. After adjusting for the new shares and the cash infusion, I estimate that book value per share is about $4.20 and cash per share is approximately $3.30. Thus, this profitable and rapidly growing travel services company is available for approximately 2.5 times book value. This issue should be fairly volatile, but most of the volatility should be up from here.
What do you think about Universal Travel, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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