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 (AMEX: GSS ) has earned a respected four-star ranking.
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 (NYSE: AU )
IAMGOLD (NYSE: IAG ) |
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 (NYSE: ABX ) (2.4).
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!
What do you think about Golden Star, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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