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4-Star Stocks Poised to Pop: Verso Paper

Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, coated-paper specialist Verso Paper (NYSE: VRS  ) has earned a respected four-star ranking.

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

Verso facts

Headquarters

Memphis, Tenn.

Market Cap

$155.6 million

Industry

Paper products

Trailing-12-Month Revenue

$1.45 billion

Management

President/CEO Michael Jackson (since 2006)

CFO Robert Mundy (since 2006)

Trailing-12-Month Return on Equity

58.5%

Cash / Debt

$140.5 million / $1.37 billion

Other Highly Rated Paper Plays

Aracruz Celulose (NYSE: ARA  )

CAPS Members Bullish on VRS Also Bullish on

General Electric (NYSE: GE  )

Bank of America (NYSE: BAC  )

CAPS Members Bearish on VRS Also Bearish on

Citigroup (NYSE: C  )

Ford (NYSE: F  )

Crocs (Nasdaq: CROX  )

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

On CAPS, all of the 27 All-Star members who have rated Verso believe the stock will outperform the S&P 500 going forward. These bulls include getrichdietrying and TSIF, both of whom are ranked in the top 5% of our community.

Two months ago, getrichdietrying brought Verso's tasty tax breaks to our community's attention:

Tax credit of 50 million per quarter, a cleaner balance sheet. More projects. Will reach at least to half of its IPO's opening of 12.00 before the end of this decade.

In a pitch from three days ago, TSIF also advised Fools not to crumple the stock:

Yes, Verso is a paper company and this is a recession, but those shiny glossies and special print advertising paper aren't quite going out of style. Especially as we near the early Christmas shopping season. ... Probably time to get the advertising paper orders in right about now! High debt, not the best of financials, but at sub $3 per share, some insider buying and a ROE of 58% let's see if this paper cut heals.

What do you think about Verso, 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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.


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