1-Star Stocks Poised to Plunge: Star Scientific?
Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, smokeless tobacco products specialist Star Scientific (NAS: STSI) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Star Scientific's business and see what CAPS investors are saying about the stock right now.
Star Scientificfacts
Headquarters (founded) | Glen Allen, Va. (2000) |
Market Cap | $589.7 million |
Industry | Tobacco |
Trailing-12-Month Revenue | $4.1 million |
Management | Chairman/COO Paul Perito |
Return on Capital (average, past 3 years) | (101.1%) |
Cash / Debt | $10.6 million / $3.8 million |
Competitors | Altria |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 47% of the 322 members who have rated Star Scientific believe the stock will underperform the S&P 500 going forward.
Earlier this week, one of those bears, All-Star zzlangerhans, offered a rather sarcastic take on Star Scientific's dietary supplement Antabloc:
In case you couldn't figure out a way to use Anatabloc to make your life better, now there's Anatabloc face cream "to improve the appearance of the skin". Who doesn't need that? I'm going to wait for the entire line of Anatabloc toiletries to come out -- shaving cream, toothpaste, and deodarant -- and then buy in bulk. Meanwhile, [subsidiary Rock Creek Pharmaceuticals] has initiated a placebo-controlled trial of Anatabloc in Alzheimer's. I heard the delay in starting the trial was because no one was sure what placebo to use to control for a placebo. I think Star had better keep hoping that RJ Reynolds just gives up on fighting the nuisance lawsuits and decides to buy them off for a couple hundred million.
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The article 1-Star Stocks Poised to Plunge: Star Scientific? originally appeared on Fool.com.
Fool contributorBrian Pacamparaowns no position in any of the companies mentioned. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Fool'sdisclosure policyalways gets a perfect score.
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