5-Star Stocks Poised to Pop: Braskem

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, petrochemical company Braskem (NYS: BAK) has earned a coveted five-star ranking.

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

Braskem facts

Headquarters (Founded)

Camacari, Brazil (1972)

Market Cap

$5.8 billion

Industry

Commodity chemicals

Trailing-12-Month Revenue

$16.8 billion

Management

CEO Carlos Fadigas de Souza (since 2010)
CFO Marcela Drehmer (since 2010)

Return on Equity (Average, Past 3 Years)

(1%)

Cash/Debt

$1.8 billion / $7.7 billion

Dividend Yield

6.3%

Competitors

BASF
YPF S.A.

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

On CAPS, 96% of the 345 members who have rated Braskem believe the stock will outperform the S&P 500 going forward.

This past fall, one of those bulls, troym72, nicely summed up the bull case for our community:

Forward P/E suggests that Braskem will be worth $25 per share by the end of 2012. ... The demand for petrol products in Brazil is only going to grow as they continue to develop. Yes, they are becoming more and more dependent on Ethanol produced from sugar cane, but I think that good 'ole petrol is still the cheaper alternative and will continue to see demand growth.

What do you think about Braskem, 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!

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

At the time thisarticle 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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