2-Star Stocks Poised to Plunge: Extorre Gold Mines?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold and silver explorer Extorre Gold Mines (NYSE: XG  ) has received a distressing two-star ranking.

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

Extorre facts

Headquarters (founded)	Vancouver, Canada (2009)
Market Cap	$276.2 million
Industry	Gold
Trailing-12-Month Revenue	NA
Management	CEO Trevor Mulroney CFO Darcy Daubaras
Trailing-12-Month Return on Equity	(130.6%)
Cash/Debt	$40.9 million / $0
Competitors	Barrick Gold Goldcorp Yamana Gold

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 15% of the 46 members who have rated Extorre believe the stock will underperform the S&P 500 going forward.

Just last week, fellow Fool Rich Duprey (TMFCop) tapped Extorre's exposure to Argentina as particularly worrisome:

They ought to have everything right going for it, including recently announced high-grade finds at Cerro Moro. But we're dealing with Argentina here, and President Kirchner has embarked on a path of stealing the assets of foreign companies to shore up the economy her and her husband wrecked with out of control spending. As we saw in Venezuela where strongman Hugo Chavez stolen the property of foreign nationals across a myriad of industries it's going to happen in Argentina soon too. Already she's given warnings to Barrick and Vale to figure out ways to stop importing goods and starting using local supplies. That was the pretext she used in the robbery of YPF. Look for the gold industry to feel the brunt of her rapacious policies soon.

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