5-Star Stocks Poised to Pop: Knightsbridge Tankers

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and dry bulk cargo transporter Knightsbridge Tankers (NAS: VLCCF) has earned a coveted five-star ranking.

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

Knightsbridge facts

Headquarters (Founded)

Hamilton, Bermuda (1996)

Market Cap

$364.2 million

Industry

Oil and gas storage and transportation

Trailing-12-Month Revenue

$92.9 million

Management

Chairman/CEO Ola Lorentzon
CFO Inger Klemp

Return on Equity (Average, Past 3 Years)

11.7%

Cash/Debt

$49.4 million / $154.6 million

Dividend Yield

13.5%

Competitors

Gastem
Overseas Shipholding Group
Teekay

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

On CAPS, 96% of the 384 members who have rated Knightsbridge believe the stock will outperform the S&P 500 going forward.

Earlier this month, one of those Fools, Naxias, tapped Knightsbridge as an attractive bargain pick:

Shippers have taken it the hard way since the market downturn. Such pressure validates, to some degree, the management decisions to pursue long-term contracts. With P/E of about 10 today, and a strong dividend and balance sheet, this is the sort of stock that interests me. That is not to say this is a risk free play -- when does that ever happen -- and the company's contracts could expire before the sector improves, but we know that buying time is when good companies are in bad times. It's on my short list for my next dividend reinvestment.

What do you think about Knightsbridge, 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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