4-Star Stocks Poised to Pop: Transportadora

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, natural gas pipeline operator Transportadora de Gas Del Sur (NYS: TGS) has earned a respected four-star ranking.

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

Transportadora facts

Headquarters (founded)

Buenos Aires, Argentina (1992)

Market Cap

$429.0 million


Gas utilities

Trailing-12-Month Revenue

$449.7 million


CEO Carlos Seijo (since 2009)
CFO Gonzalo Olivera (since 2007)

Return on Equity (average, past 3 years)



$55 million / $385.5 million

Dividend Yield



El Paso
Telecom Argentina

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

On CAPS, 97% of the 262 members who have rated Transportadora believe the stock will outperform the S&P 500 going forward.

Just a couple of days ago, one of those bulls, toadaly, tapped the stock as a solid bargain opportunity:

Transportadora de Gas Del Sur is a very profitable and undervalued company, in spite of the world glut of natural gas. The shares are selling below book, they have plenty of cash on hand, profit margins are good. The only negative is that they simply cannot sustain the dividend at its current absurd level. The yield *must* drop down to no more than about 10% to be sustainable. But hey, an undervalued company in a hated industry that pays 10%? Sign me up.

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, Transportadora may not be your top choice.

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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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