2-Star Stocks Poised to Plunge: Extorre Gold Mines?

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, gold and silver explorer Extorre Gold Mines (NYS: XG) has received a distressing two-star ranking.

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

Extorrefacts

Headquarters (founded)Vancouver, Canada (2009)
Market Cap$276.2 million
IndustryGold
Trailing-12-Month RevenueNA
ManagementCEO Trevor Mulroney
CFO Darcy Daubaras
Trailing-12-Month Return on Equity(130.6%)
Cash/Debt$40.9 million / $0
CompetitorsBarrick Gold
Goldcorp
Yamana Gold

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

On CAPS, 15% of the 46 members who have rated Extorre believe the stock will underperform the S&P 500 going forward.

Just last week, fellow Fool Rich Duprey (TMFCop) tapped Extorre's exposure to Argentina as particularly worrisome:

They ought to have everything right going for it, including recently announced high-grade finds at Cerro Moro. But we're dealing with Argentina here, and President Kirchner has embarked on a path of stealing the assets of foreign companies to shore up the economy her and her husband wrecked with out of control spending. As we saw in Venezuela where strongman Hugo Chavez stolen the property of foreign nationals across a myriad of industries it's going to happen in Argentina soon too. Already she's given warnings to Barrick and Vale to figure out ways to stop importing goods and starting using local supplies. That was the pretext she used in the robbery of YPF. Look for the gold industry to feel the brunt of her rapacious policies soon.

If you want market-topping returns, you need to protect your portfolio from any undue risk. Luckily, we've compiled a special free report for investors called "The Tiny Gold Stock Digging Up Massive Profits," which uncovers another small miner with big potential. 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 this article was published Fool contributor Brian Pacampara owns no position in any of the companies mentioned. 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