2-Star Stocks Poised to Plunge: Vail Resorts?

Before you go, we thought you'd like these...
Before you go close icon

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, ski resort operator Vail Resorts (NYS: MTN) has received a distressing two-star ranking.

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

Vail facts:

Headquarters (founded)Broomfield, Colo. (1997)
Market Cap$1.45 billion
IndustryLeisure facilities
Trailing-12-Month Revenue$1.04 billion
ManagementChairman/CEO Robert Katz
Co-President/CFO Jeffrey Jones
Return on Equity (average, past 3 years)4.5%
Cash/Debt$44.7 million / $491 million
Dividend Yield1.5%
CompetitorsAspen Skiing Co.
Booth Creek Ski Holdings
Intrawest ULC

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

On CAPS, 17% of the 384 members who have rated Vail believe the stock will underperform the S&P 500 going forward.

Just last week, one of those bears, bike5389, tapped the stock as a rather unseasonable pick:

What chance does [Vail] have to make their numbers this quarter? Most analysts seem to be [positive that] [Vail] will they be forced to reduce their estimates. Based on the fact they have so little snow at all their areas and are forced to spend a fortune on snow making. Even though 35% of the revenue is from season tickets one would think all other income areas are way down.

What do you think about Vail, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Want to see how well (or not so well) the stocks in this series are performing? Follow the newTrackPoisedToCAPS account.

At the time this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool newsletter services have recommended buying shares of Vail. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners