2-Star Stocks Poised to Plunge: Brunswick?

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Based on the aggregated intelligence of 135,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, recreational-products maker Brunswick (NYSE: BC) has received a distressing two-star ranking.

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

Brunswick facts

Headquarters (founded)	Lake Forest, Ill. (1844)
Market Cap	$826.1 million
Industry	Leisure products
TTM Revenue	$3.3 billion
Management	Chairman/CEO Dustan McCoy (since 2005) CFO Peter Hamilton (since 2008)
Business Segments	Marine, Fitness, Bowling, Billiards
Return on Capital (average, last five years and TTM)	4.8% and (7.1%)
6-Month Return	213%
Competitors	Marine Products (NYSE: MPX)
CAPS Members Bearish on BC Also Bearish on	D.R. Horton (NYSE: DHI) Lennar (NYSE: LEN) Centex (NYSE: CTX)
CAPS Members Bullish on BC Also Bullish on	Citigroup (NYSE: C) Bank of America (NYSE: BAC)

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

Over on CAPS, some 38% of the 183 members who have rated Brunswick believe the stock will underperform the S&P 500 going forward. These bears include All-Stars BigFatBEAR and TSIF, both of whom are ranked in the top 1% of our community.

Late last month, BigFatBEAR offered a commonsense bear case against Brunswick: "Bleeding cash, demand looks slack for at least a year."

In a pitch from last week, TSIF knocked down even more bullish pins:

Brunswick Corp is another stock on a tear back from perhaps unjustified lows in March, but well above actual value in this economy after a solid year of losses that have consumed over 80% of Brunswick Corp's net tangible assets. ... This gives [Brunswick] little wiggle room should another 7/10 split come along. The boat shows appear to be little help in its luxury boating division. With such strong losses, Brunswick is another example of a stock that ran up well past its current value in the recent rally to nearly 2X book that is highly leveraged. With some military and a great deal of government on its order books, stimulus efforts may help Brunswick, but at the current stock price it is NOT investor grade!

What do you think about Brunswick, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 135,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.