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5-Star Stocks Poised to Pop: Thompson Creek

Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, molybdenum producer Thompson Creek Metals (NYSE: TC  ) has earned a coveted five-star ranking.

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

Thompson Creek facts

Headquarters

Denver

Market Cap

$1.3 billion

Industry

Diversified metals and mining

Trailing-12-Month Revenue

$422.4 million

Management

CEO Kevin Loughrey (since 2006)

CFO Pamela Saxton (since 2008)

Return on Equity (Average, Past 3 Years)

17.3%

Cash/Debt

$523.6 million / $11.4 million

Competitors

General Moly (NYSE: GMO  )

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

On CAPS, 98% of the 853 members who have rated Thompson Creek believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars rknapton and mrindependent, both of whom are ranked in the top 15% of our community.

Just last week, rknapton highlighted Thompson Creek as "a cash rich company, trading at a very attractive valuation, and still has plenty of room for growth due to both an expansion of operations along with the underlying commodity may very well rise in price."

Molybdenum doesn't attract as much attention as other commodities, but its several industrial applications, especially in steel alloys, have many Fools singing the metal's praises. With molybdenum prices still down more than 50% off their 2008 highs, our community is tapping Thompson Creek, one of the world's largest pure molybdenum producers, along with its much smaller brother, General Moly, as rock-solid bargains.

Of course, Thompson Creek, which has taken a particularly tough stock price beating of late, is drawing extra attention from All-Stars like mrindependent:

Based on the recent price action for Thompson Creek's stock, you would think that no one will ever need molybdenum again. ... Whenever molybdenum markets rebound, this company will be churning out eps of $2 to $3. Management is extremely savvy. As a result, the company is extremely well positioned in the molybdenum market and the balance sheet is pristine. The company currently boasts $4 per share in net cash. Even after this stock doubles in value, it will still be undervalued in relation to the S&P 500.

What do you think about Thompson Creek, 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. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

5/25/2012 4:00 PM
TC $3.71 Up +0.01 +0.27%
Thompson Creek Met… CAPS Rating: *****

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