Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold explorer Gold Resource (AMEX: GORO ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Gold Resource's business and see what CAPS investors are saying about the stock right now.
Gold Resource facts
| Headquarters (founded) | Denver (1998) |
| Market Cap | $1.2 billion |
| Industry | Precious metals and minerals |
| Trailing-12-Month Revenue | $105.2 million |
| Management | Co-Founder/Chairman/CEO William Reid CFO Paul Oberman |
| Return on Capital (average, past 3 years) | (61.4%) |
| Cash/Debt | $52.0 million / $0 |
| Dividend Yield | 2.6% |
| Competitors | BHP Billiton Grupo Mexico SAB de CV Rio Tinto |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 51% of the 215 members who have rated Gold Resource believe the stock will underperform the S&P 500 going forward.
Earlier this month, one of those Fools, All-Star BuffettJunior1, tapped the stock as a questionable income opportunity:
It seems that if you just put the word "gold" in your company name the stock is automatically worth a thousand times its fair value. This is the same trick used in the 90's where all you had to do was put "dot com" in the company name and the stock price would shoot up to some ridiculous valuation. I was also very surprised to see that this company pays a dividend. Since this is still an exploration stage company and has obviously never been profitable, then why in the world would they pay a dividend? ... I truly cannot understand why anyone would invest in this...
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Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.
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