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Strategy Lab is MSN Money's stock-picking challenge. To learn more about the game and the contenders, click here.
Those of you who've been following my picks know that as the CAPS Commando, I've been using the CAPS reader stock-rating system to help me make my selections in Strategy Lab.
So it should come as no surprise that I'm adding another stock sporting a perfect five-star CAPS rating -- namely Titanium Metals (TIE, news, msgs).
In addition to sporting the highest possible rating, Titanium Metals boasts three-year revenue and earnings-per-share growth rates of about 30% and 35%, respectively, a balance sheet with zero long-term debt and a trailing price-to-earnings ratio of about 14.5 (which means its stock is relatively cheap compared with its industry, with an average P/E of 23).
I also believe Titanium Metals operates in an industry that should continue to grow for years to come. Titanium is being increasingly used in aerospace applications, in particular, due to its combination of high strength and low weight -- a key combination when building aircraft, especially as fuel prices continue to soar. (Lower weight means less fuel consumption.)
CAPS player "Creek79" has this to say about Titanium Metals:
"Titanium Metals Corporation is in the right business at the right time. They have locked in long-term buyers, a growing positive balance sheet, nice dividends and are buying back much of the stock. This is a formula for a stock that will make considerable gains for years to come."
Consistent with my strategy of staying fully invested via exchange-traded funds, then selling ETF shares and replacing them with individual stocks over time, I'm also selling 160 shares of the Vanguard Large-Cap ETF (VV, news, msgs).
While not every five-star CAPS stock is going to beat the market, five of my six individual stock selections are up. The best is up well over 50%, two are up well over 20%, one is up about 15%, another is up 5%, and the lone "miss" is down less than 3%. This is all about five months.
If this is the kind of performance you'd like to see in your own investing portfolio (wouldn't we all!), I encourage you to spend some time poking around CAPS. Rate some stocks and offer your comments, too.
You'll help make CAPS smarter and perhaps become a better investor yourself in the process. I know I sure have.
And now's a particularly good time to jump in, since you can still compete in the MSN Stock Challenge. Prizes include a $15,000 cash bonanza. Click here to sign up.
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