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5-Star Stocks Poised to Pop: Landec

Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, polymer products specialist Landec (Nasdaq: LNDC  ) has earned a coveted five-star ranking.

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

Landec facts

Headquarters (Founded)

Menlo Park, Calif. (1986)

Market Cap

$179.3 million

Industry

Specialty chemicals

Trailing-12-Month Revenue

$228.0 million

Management

CEO Gary Steele (since 1991)
CFO Gregory Skinner (since 1999)

Return on Equity (Average, Past 3 Years)

18.0%

Cash / Debt

$68.1 million / $0

Competitors

Dow Chemical (NYSE: DOW  )
Sealed Air (NYSE: SEE  )

Customers

Costco Wholesale (Nasdaq: COST  )
Monsanto (NYSE: MON  )

Other Highly Rated Chemical Stocks

DuPont (NYSE: DD  )
FMC (NYSE: FMC  )

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

On CAPS, 99% of the 353 All-Star members who have rated Landec believe the stock will outperform the S&P 500 going forward. These bulls include cesanders and timbermen, both of whom are ranked in the top 5% of our community.

Just last month, cesanders brought Landec's rock-solid financial position to our community's attention:

Almost $2.60/share in cash and short term investments. No debt. Steady income from food packaging business.

Multiple potential applications for their technology (such as seed treatment coatings, pesticides, drugs, and fragrances).

What I see is a company with limited downside, multiple potential catalysts, and a balance sheet that enables it to last until one of their potential catalysts takes off.

In a pitch from one month earlier, timbermen shared that bullish sentiment:

They sold their seed business to Monsanto but kept their seed coatings technology and made a new business venture out of licensing that technology back to the division they sold…. They make polymers that can abruptly change their physical properties at various temperature or other types of triggers, but more importantly they seem to have a very open mind with regard to possible applications of their technology. Everything from an exclusive packaging agreement with [Chiquita Banana] to latent catalyst systems for coatings through a deal with [Air Products].

What do you think about Landec, 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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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Costco is a choice of Motley Fool Inside Value and Stock Advisor, and the Fool owns shares of it. Monsanto is also a choice of Inside Value. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
LNDC $7.07 Up +0.12 +1.73%
Landec Corp CAPS Rating: ****
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MON $73.56 Down -0.38 -0.51%
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SEE $16.00 Down -0.08 -0.50%
Sealed Air Corp. CAPS Rating: *****
COST $84.48 Down +0.00 +0.00%
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