Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold miner Golden Star Resources
With that in mind, let's take a closer look at Golden Star's business and see what CAPS investors are saying about the stock right now.
Golden Star facts
| Headquarters (Founded) | Littleton, Colo. (1984) |
| Market Cap | $739.5 million |
| Industry | Gold |
| Trailing-12-Month Revenue | $445.9 million |
| Management | CEO Thomas Mair (since 2008) CFO John Labate (since 2008) |
| Return on Equity (Average, Past 3 Years) | (7.2%) |
| Cash/Debt | $151.7 million / $144.9 million |
| Competitors |
AngloGold Ashanti IAMGOLD |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 95% of the 847 members who have rated Golden Star believe the stock will outperform the S&P 500 going forward. These bulls include fellow Fool Sean Williams (TMFUltralong) and silverminer, both of whom are ranked in the top 0.2% of our community.
Just last month, Sean nicely summed up the Golden Star bull case: "The company, unlike a decent amount of its rivals, is profitable ... and is going to take advantage of gold prices in excess of $1,500 even with costs at the majority of its mines running considerably higher than its competitors. ... [W]ith the dollar looking weaker than a 2-year bond in Greece gold should remain strong and that should bode well for Golden Star Resources."
Golden Star even sports a cheapish price-to-book ratio of 1.7. That represents a clear discount to other gold stocks like AngloGold (4.2), IAMGOLD (2.8), and Barrick Gold
In a reply pitch to Sean's bull case, silverminer expanded on the opportunity:
There is no foul odor apart from the stench of some seriously rotten execution of late. The company has been around for a long time, though, and it definitely has some serious gold locked underground. It's not a top pick of mine, but it is one I added to in recent weeks because I feel the market has gone too far in burying this stock beneath the woodshed (though of course much of it was well deserved). If/when they get their Prestea permits, watch it climb!
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