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4-Star Stocks Poised to Pop: Buenaventura

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Peruvian precious metals miner Companhia de Minas Buenaventura (NYSE: BVN  ) has earned a respected four-star ranking.

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

Buenaventura facts

Headquarters (Founded) Lima, Peru (1953)
Market Cap $11.5 billion
Industry Gold
Trailing-12-Month Revenue $1.4 billion
Management

Chairman/CEO Roque Benavides

CFO Carlos Pinillos

Return on Equity (Average, Past 3 Years) 28.1%
Cash/Debt $666.5 million / $81.7 million
Dividend Yield 1.1%
Competitors

Barrick Gold (NYSE: ABX  )

Newmont Mining (NYSE: NEM  )

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

On CAPS, 96% of the 789 members who have rated Buenaventura believe the stock will outperform the S&P 500 going forward. These bulls include All-Star kenqc, who is ranked in the top 15% of our community, and NeuroNerd.

Earlier this summer, kenqc tapped Buenaventura as a particularly solid selection: "[F]undamentals of the company and its products still strong in a growing economy with demand increasing for precious metals."

Over the past three years, Buenaventura has even grown its dividend at a brisk rate of 35% annually. That's much faster than industry peers like Barrick (11%), Newmont (18%), and Yamana Gold (NYSE: AUY  ) (24%).

CAPS member NeuroNerd elaborates on the Buenaventura bull case:

I think that nationalization concerns are overblown ... Probably looking at a mining tax of some sort, but given BVN's status as one of the lower-cost producers, my money says they can absorb the hit. I'm not terribly bullish on precious metals in the very long run at these prices, but I anticipate gold and silver doing well in the intermediate term as people continue freaking out about debt and monetary issues in advanced economies. Balance sheet is very solid, as are cash flows ...

What do you think about Buenaventura, 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!

Interested in another easy way to track Buenaventura? Add it to your watchlist.

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Try any of our Foolish newsletter services free for 30 days.

We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool's disclosure policy always gets a perfect score.


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DocumentId: 1554403, ~/Articles/ArticleHandler.aspx, 5/28/2012 3:16:37 AM

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Related Tickers

5/25/2012 4:00 PM
BVN $38.71 Up +0.22 +0.57%
Companhia de Minas… CAPS Rating: ***
NEM $48.82 Up +0.19 +0.39%
Newmont Mining Cor… CAPS Rating: ***
AUY $14.88 Up +0.42 +2.90%
Yamana Gold, Inc.… CAPS Rating: ****
ABX $40.00 Up +0.49 +1.24%
Barrick Gold Corp… CAPS Rating: ***

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