4-Star Stocks Poised to Pop: Rubicon Minerals

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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 (ASE: 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
IndustryGold
ManagementPresident/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 (NYS: 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 (NYS: ABX) , Newmont Mining (NYS: NEM) , and Yamana Gold (NYS: 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 trackRubicon?Add it to your watchlist.

At the time this article was published 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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