With that in mind, let's take a closer look at General Steel's business, and see what CAPS investors are saying about the stock right now.
General Steel facts
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Headquarters (founded)
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Beijing, China (1988)
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Market Cap
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$157.46 million
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Industry
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Steel
|
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TTM Revenue
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$1.35 billion
|
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Management
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Chairman/CEO Zuo Sheng Yu
CFO John Chen
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Compound Annual Revenue Growth (over last five years)
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88.2%
|
|
Competitors
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Jiuquan Iron & Steel
Guangdong Shaoguan Iron and Steel
|
|
CAPS members bullish on GSI also bullish on
|
Apple (Nasdaq: AAPL)
Vale (NYSE: RIO)
American Oriental Bioengineering (NYSE: AOB)
|
|
CAPS members bearish on GSI also bearish on
|
Ford Motor (NYSE: F)
General Motors (NYSE: GM)
Procter & Gamble (NYSE: PG)
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 443 of the 464 members who have rated General
Steel -- some 95% -- believe the stock will outperform the S&P 500
going forward. These bulls include gorki1951 and Viking70.
In January, gorki1951 singled out the stock as a solid way to play in China:
Gotta love a company that the Chinese government
takes a shine to. They also appear to be the one company that can
provide steel to the inland growth that is being pushed. Steel is very
expensive to transport and they are in the right place at the right
time.
In a pitch from last week, Viking70 manages to stay generally bullish on General Steel:
The numbers behind this company are not all that
great. It carries a higher debt load than I prefer to see. It also has
a relatively poor ROI. And the [gross margin] is terrible. However, I
am betting that the Chinese economic recovery will materialize and the
growth opportunities in China will exceed those of most other
countries. A low P/E makes the risks worth taking on this stock. Gotta
figure management will improve (or am I hoping?).
What do you think about General Steel, 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.
© 2009 UCLICK, L.L.C.
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