5-Star Stocks Poised to Pop: International Coal

Based on the aggregated intelligence of 130,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, International Coal (NYSE: ICO  ) has earned a coveted five-star ranking.

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

International Coal facts

Headquarters (founded)

Scott Depot, W. Va. (2004)

Market Cap

$277.54 million

Industry

Coal and consumable fuels

Trailing-12-Month Revenue

$1.1 billion

Management

CEO Bennett Hatfield (since 2005)
CFO Bradley Harris (since 2006)

Compound Annual Revenue Growth (over last three years)

19.0%

Competitors

Alpha Natural Resources (NYSE: ANR  )
Arch Coal (NYSE: ACI  )
Massey Energy (NYSE: MEE  )

CAPS members bullish on ICO also bullish on

Chesapeake Energy (NYSE: CHK  )
Vale (NYSE: RIO  )

CAPS members bearish on ICO also bearish on

American Express (NYSE: AXP  )

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

Over on CAPS, 667 of the 692 members who have rated International Coal -- or 96% -- believe the stock will outperform the S&P 500 going forward. These bulls include All-Star tuffsledding, who is ranked in the top 0.2% of our community, and TSIF.

Earlier this week, tuffsledding tapped International Coal as a way to take advantage of the downturn: "[W]hen the economy starts to rebound, coal demand will rise again, despite the green revolution, we still need coal."

In a pitch from two weeks ago, TSIF shares that contrarian sentiment:

New coal plant introduction may be limited, but existing coal plants in the US will be operating for at least the next two decades before going out of service and some will limp along much longer. In addition, some of the Appalachia coal that International Coal Group mines is high quality metallurgical quality coal needed by the steel industry. [International Coal's] customers include high grade utilities. The cost of shipping coal means that even the pricing pressures have some limits as competition from overseas is not economical. While coal is a four letter word in a dirty business, as an investment [International Coal] is well positioned to rise above the sub-$2 price level it is at now.

What do you think about International Coal, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 130,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Chesapeake and American Express are Motley Fool Inside Value recommendations. The Fool owns shares of American Express. The Fool's disclosure policy always gets a perfect score.


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