Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, newly public football club operator Manchester United (NYSE: MANU ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Manchester United's business and see what CAPS investors are saying about the stock right now.
Manchester United facts
||Manchester, U.K. (1990)
||CEO David Gill
COO Michael Bolingbroke
|Trailing-12-Month Return on Equity
||$151.0 million / $459 million
||Olympique Lyonnais Groupe
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 97% of the 87 members who have rated Manchester United believe the stock will underperform the S&P 500 going forward.
Just last week, one of those Fools, All-Star DJoshuaRubin, succinctly summed up the bear case for our community:
As it becomes clear that teams require monster money, and other teams -- Man City, Chelsea, Liverpool, Tottenham, PSG, etc. ramp up spending, and ramp up their global marketing operations, the allure of Man United will fade. Their dominance was earned through excellent management -- and a massive financial advantage. That will be diluted more and more. A few billion seems like a high enough valuation to me.
If you want market-thumping returns, you need to protect your portfolio from any undue risk. Luckily, we've found another stock we are incredibly excited about -- excited enough to dub it "The Motley Fool's Top Stock for 2012." We have compiled a special free report for investors to uncover this stock today. The report is 100% free, but it won't be here forever, so click here to access it now.
Want to see how well (or not so well) the stocks in this series are performing? Follow the new TrackPoisedTo CAPS account.