5-Star Stocks Poised to Pop: Mesabi Trust

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, iron ore royalty trust Mesabi Trust (NYS: MSB) has earned a coveted five-star ranking.

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

Mesabi facts

Headquarters (founded)

New York (1919)

Market Cap

$337.3 million

Industry

Steel

Trailing-12-Month Revenue

$34.6 million

Compound Annual Revenue and Net Income Growth (over past 5 years)

13.9% and 14.1%

Cash/Debt

$1.2 million / $0

Dividend Yield

1%

Competitors

BHP Billiton
Great Northern Iron Ore Properties
Rio Tinto


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

On CAPS, 96% of the 295 of the members who have rated Mesabi believe the stock will outperform the S&P 500 going forward.

Just last week, one of those bulls, cajun1958, tapped Mesabi as a solid bargain opportunity:

It appears that the slowing down of demand in China has already been factored into the stock [price]. I have a soft spot for [Mesabi] since I bought it under $10 when the US steel industry was declared [dead on arrival]. However, increased domestic industrial demand from [AK Steel], auto makers, appliance makers etc. make this cheap stock a buy and a great income pick.

If you want market-topping 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 a strong five-star rating, Mesabi may not be your top choice.

If that's the case, we've compiled a special free report for investors called "Secure Your Future With 9 Rock-Solid Dividend Stocks," which uncovers several other juicy income opportunities. The report is 100% free, but it won't be around 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 thisarticle was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Chevron. 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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