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4-Star Stocks Poised to Pop: Rubicon Minerals

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Canadian gold explorer Rubicon Minerals (AMEX: RBY  ) has earned a respected four-star ranking.

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

Rubicon facts

Headquarters (founded) Vancouver, Canada (1996)
Market Cap $942.1 million
Industry Gold
Management President/CEO David Adamson (since 2001) CFO Robert Lewis (since 2005)
Return on Equity (average, past 3 years) (5.2%)
Cash/Debt $83.8 million / $0

Source: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 791 members who have rated Rubicon believe the stock will outperform the S&P 500 going forward. These bulls include All-Star Chemdawg, who is ranked in the top 5% of our community, and NHWeston.

This past summer , Chemdawg highlighted Agnico-Eagle's (NYSE: AEM  ) big stake in Rubicon as a sign of good things to come: "a good company at a sale price. IF AEM buys these guys out you will be glad that you were on board ... either way I think this ends well for shareholders."

Rubicon even boasts $83.8 million in cash on its balance sheet with zero debt. Meanwhile, while hardly overleveraged, larger gold plays such as Barrick Gold (NYSE: ABX  ) , Newmont Mining (NYSE: NEM  ) , and Yamana Gold (NYSE: AUY  ) sport debt-to-equity ratios of 55%, 25%, and 6%, respectively.

CAPS member NHWeston elaborates on the bull case:

Okay, miners do not interest me. But when a company with a lot of money and expertise like Agnico-Eagle buys up almost ten percent of a dirt cheap company ... NOW I'M INTERESTED! If they are willing to put that kind dough in Rubicon, maybe I should, too. That kind of investment also signals thoughts of an eventual buy-out. ... Rubicon, however, just seems more of a do-able project and, if Agnico is not interested in a buyout, they sure are interested enough to get my attention.

What do you think about Rubicon, 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 Rubicon? 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.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 02, 2011, at 3:19 PM, MarketRuler wrote:

    I like how this stock was "poised to pop" and the stock is just now getting back to the price it was at when this article was written. Way to go...

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DocumentId: 1589566, ~/Articles/ArticleHandler.aspx, 5/28/2012 12:00:24 AM

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Related Tickers

5/25/2012 4:00 PM
RBY $2.92 Up +0.02 +0.69%
Rubicon Minerals C… CAPS Rating: ****
AUY $14.88 Up +0.42 +2.90%
Yamana Gold, Inc.… CAPS Rating: ****
NEM $48.82 Up +0.19 +0.39%
Newmont Mining Cor… CAPS Rating: ***
ABX $40.00 Up +0.49 +1.24%
Barrick Gold Corp… CAPS Rating: ***
AEM $39.79 Up +0.17 +0.43%
Agnico-Eagle Mines… CAPS Rating: ***

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