Guanshen Railway (GSH)

[Investorman]

5-Star Stocks Poised to Pop: Guangshen Railway
http://www.fool.com/investing/international/2008/12/19/5-star-stocks-poised-to-pop-guangshen-railway.aspx

Brian D. Pacampara
December 19, 2008


Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Chinese railroad operator Guangshen Railway (NYSE: GSH) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

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

Guangshen facts

Headquarters (Founded)
Shenzhen, China (1996)

Market Cap
$2.65 Billion

Industry
Railroads

Trailing-12-Month Revenue
$1.72 Billion

Management
Chairman He Yuhua (Since June 2007)

General Manager Shen Yi (Since October 2008)

Return on Equity (Average, Past Three Years)
5.8%


Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 521 of the 538 members who have rated Guangshen -- some 97% -- believe the stock will outperform the S&P 500 going forward. These Foolish bulls include CAPS All-Star Theresewin and coregonus.

Last week, Theresewin urged our community to ride Guangshen all the way to gains: "[Get] on board while you still can ... China NEEDS its rail system to better integrate its country and is investing big bucks to do so!"

In a pitch from last month, coregonus agreed and elaborated on the strong long-term trends supporting the stock:

Backing up my faith in railways, and that China is totally committed to rail in the long term -- if you have ever ridden their hi speed mag-lev train in Shanghai you get the depth of their commitment -- they know not everyone will have cars, it would not work there. As more cities get built out, trains will too -- and at the end there are real assets in the train business and freight on rail has very long legs (or tracks).