4-Star Stocks Poised to Pop: Yamana Gold

7 Recommendations

Based on the aggregated intelligence of 115,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold miner Yamana Gold (NYSE: AUY) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.

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

Yamana Gold facts

Headquarters (Founded)

Toronto, Canada (1980)

Market Cap

$7.25 billion

Industry

Gold

TTM Revenue

$1.11 billion

Management

CEO Peter Marrone (since 2003)

CFO Charles Main (since 2003)

TTM Return on Capital

7.3%

Competitors

Kinross Gold (NYSE: KGC),

AngloGold Ashanti (NYSE: AU)

CAPS members bullish on AUY also bullish on

Freeport-McMoRan Copper & Gold (NYSE: FCX),

Vale (NYSE: RIO)

CAPS members bearish on AUY also bearish on

Goldcorp (NYSE: GG),

Barrick Gold (NYSE: ABX)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, 590 of the 602 All-Star members who have rated Yamana Gold -- or 98% -- believe the stock will outperform the S&P 500. These All-Star bulls include mnymaker and TimmyTheGeek, both of whom are ranked in the top 20% of our community.

Last week, mnymaker used simple (but effective) logic to make a case for the stock: "Everyone is putting their money in GOLD as a safe haven = higher gold prices = higher revenue for Yamana."

In a pitch from two days earlier, TimmyTheGeek follows that line of thinking, further stressing Yamana's downturn-defending characteristics:

I'm no economic genius but I think gold is a good investment while the dollar remains weak and the economy in general is in the tank, which I think will be the case for another year or two. AUY also pays a dividend similar to a money market [account] interest so why not unpark some of that spare cash now?

What do you think about Yamana Gold, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. CAPS is 100% free, so simply click here to get started.

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Foolish contributor Brian Pacampara owns no position in any of the companies mentioned. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • On September 25, 2008, at 7:29 PM, doncz00 wrote: Report this Comment

    Its nice to see the CAPS continually talking up Yamana. I'm a shareholder and I've been watching it seems, forever.Despite all the watching I've been seeing the stock nosedive and hang arounjd the 7 to $10 dollar range for the last 6 months. My question is, when do you suppose this thing will pop. I would love to see some positive gains, especially since the world and US economies are on the brink. I think it has the potential to be a great stock but something is constantly holding it down.

    Any thoughts?

  • On September 26, 2008, at 2:07 PM, bizcardnut64 wrote: Report this Comment

    CAPS members can talk up AUY all they want but it doesn't look like they back up their recommendation.

    Gold hit a record $1,023.50 on March 17, 2008. AUY traded as high as $19.93 that day. Since then gold has dropped roughly 12% as of today (assuming a $900 price). AUY has dropped 54% since March 17. When gold dropped down to near $750, a drop of over 25%, AUY dropped as low as $7.27, a drop of 64% from March 17th? I can understand a drop in AUY's price along with a drop in gold prices but when it is more than twice the percentage, it seems to me that it's a bit overdone.

  • On September 28, 2008, at 9:41 AM, doncz00 wrote: Report this Comment

    I think its interesting that CAPS members don't even respond to to these comments. Do you suppose this is an indication of their commitment to this soon-to-be million dollar stock?

    Just wondering.

  • On September 29, 2008, at 1:22 PM, bizcardnut64 wrote: Report this Comment

    As I mentioned before, CAPS members may rate the stocks but it sure doesn't look like the back up them up with their own money. So, i't not really surprising that they don't respond to any comments either. Today is another day of Gold being up (1%) and AUY being down (3% at the time this is written).

  • On September 29, 2008, at 3:52 PM, cfinance wrote: Report this Comment

    I agree there is some kind of information needed to fill in the gaps between dropping/rising gold prices and AUY stock. They are a mining company but do they hold a sizable amount of gold? And maybe the stock is waiting for earnings reports for some reason because investors are wary that mining companies are spending their money correctly? Don't know what the answer is but like the rest am interested in hearing some other commentary.

  • On September 29, 2008, at 6:54 PM, doncz00 wrote: Report this Comment

    I bought this stock as a safe haven commodity thinking it would go up when the economy crashed. Well, the market had a meltdown today and this stock still went down while gold itself went up. I am convinced this stock has good fundamentals but something or some group is holding it down. I know Kramer soured on it but, it didn't do anything when he was yelling buy, buy, buy either. Someone please give me some reason for this poor stock performance. Would love to see this come roaring back.

  • On September 29, 2008, at 6:54 PM, ntb10071981 wrote: Report this Comment

    did it occur to any of you that not one gold mining stock ticked up today???? that the nyse had its largest daily decline in history, and that auy is listed on the nyse, as are most other gold miners? gold could have gone up 90 dollars today, and i still dont think miners would have seen a gain.

  • On September 30, 2008, at 8:37 AM, jperser wrote: Report this Comment

    I agree, I don't know why this stock isn't moving. With the uncertainty in the market and dollar, people all over the world are buying gold. This stock should be moving up!

  • On September 30, 2008, at 2:57 PM, doncz00 wrote: Report this Comment

    Interesting! The market crashes and AUY goes down. It roars back today and AUY goes down again. OK, so it must be the dollar. The dollar is soaring today so, by default that means gold stocks suffer. But that doesn't make sense either, There are trillions and trillions of dollars out there as a result of Uncle Sams reckless spending for the last 20 years. So what value does the dollar have? This stock vis-a-vis the dollar is very frustrating, I just don't understand the way AUIY and all other gold stocks are behaving. Can anyone explain it?

  • On October 01, 2008, at 10:43 AM, bizcardnut64 wrote: Report this Comment

    Nothing has made sense in this market for months now. Seems to me the only hedge in this market is to get out completely.

  • On October 01, 2008, at 11:05 AM, dipietsa85 wrote: Report this Comment

    what is going on with this stock? GOLD RISES, MARKETS CRASH and AUY drops. MARKETS SOAR GOLD DROPS, AUY drops. Someone is holding this stock back, or maybe everyone is waiting for the the financials. If anyone else has any insight about this company, please let us know.

  • On October 02, 2008, at 8:48 AM, bizcardnut07 wrote: Report this Comment

    I agree 1,000 percent Dipietsa85. No matter what happens in the markets this stock goes down.

    Gold - UP, AUY - DOWN

    Gold - DOWN, AUY - DOWN

    Markets - UP, AUY - DOWN

    Markets - DOWN, AUY - DOWN

    Dollar - UP, AUY - DOWN

    Dollar - DOWN, AUY - DOWN

    But nearly 3,000 CAPS members rate it outperform while only 100 rate it underperform. CAPS is a joke. Investors helping other investors lose money.

  • On October 02, 2008, at 2:32 PM, bizcardnut07 wrote: Report this Comment

    Dow, DOWN 3%

    Gold, DOWN 4.5%

    AUY, DOWN 16%

    And yet a few more CAPS members gave the thumbs-up today. Keep dreaming.

  • On October 02, 2008, at 3:53 PM, bizcardnut07 wrote: Report this Comment

    You all win! A 40% decline in the price of the stock in just over a week is aboslutely ridiculous. I've had enough pain.

  • On October 03, 2008, at 9:23 AM, dipietsa85 wrote: Report this Comment

    Maybe this is a classic move of the big shark eating the small fish in the short term and I figure this company is going to drop at least another 30% because the average investor panics and sells. I am going to hold for awhile,maybe buy some more shares and average down my PPS. I still believe this company has the potential to do well, it just may need time and by time I mean long term.

    5 years+. Anyone else agree? Thanks

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Related Tickers

Yamana Gold, Inc. (USA)

AUY Up! $4.41 +0.81 (+22.50%) 4:03 PM
CAPS Rating:
3180 Outperforms
92 Underperforms
Rate This Stock

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