4-Star Stocks Poised to Pop: Intrepid Potash

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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, fertilizer producer Intrepid Potash (NYS: IPI) has earned a respected four-star ranking.

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

Intrepid facts

Headquarters (founded)Denver (2000)
Market Cap$1.6 billion
IndustryFertilizers and agricultural chemicals
Trailing-12-Month Revenue$409.0 million
ManagementCo-founder/Chairman Robert Jornayvaz III
President/CFO David Honeyfield
Return on Equity (average, past 3 years)9.2%
Cash/Debt$163.2 million / $0
CompetitorsAgrium
Mosaic
PotashCorp

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

On CAPS, 96% of the 730 members who have rated Intrepid believe the stock will outperform the S&P 500 going forward.  

A couple of months ago, one of those Fools, BenGrosser, nicely summed up the bull case for our community:

IPI, headquartered in Denver, CO, is the largest domestic producer of 'potash' (potassium chloride) and langbeinite fertilizers. ...Their fertilizers, potash in particular, are quite essential to plant formation and growth -- necessary for the production of many domestically produced crops (corn, potatoes, wheat, etc.). ...

When looking at IPI's financials for the past few years, I am excited about their future prospects to take an even larger domestic market share. For the past 3 years running, their top line has consistently increased. ...

Other positives that I won't hit on too long, but that are nonetheless extremely great indicators: ROE low teens, consistent positive cash flow from operations, reinvesting cash into property plant and equipment purchases.

If you want market-beating returns, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future. Of course, despite its four-star rating, Intrepid may not be your top choice.

We've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of PotashCorp. 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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