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1-Star Stocks Poised to Plunge: Isramco?

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, oil and natural gas small-cap Isramco (Nasdaq: ISRL  ) has received the dreaded one-star ranking.

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

Isramco facts

Headquarters (Founded)

Houston, Texas (1982)

Market Cap

$411.8 million

Industry

Oil and gas exploration and production

Trailing-12-Month Revenue

$40.0 million

Management

CEO Haim Tsuff (since 1996)
CFO Edy Francis (since 2007)

Return on Capital (Average, Past 3 Years)

(1.9%)

Year-to-Date Return

385%

Highly Rated Oil and Gas Alternatives

Chevron (NYSE: CVX  )
BP (NYSE: BP  )
Petrobras (NYSE: PBR  )

CAPS Members Bearish on ISRL Also Bearish on

Palm (Nasdaq: PALM  )
Dollar Thrifty Automotive (NYSE: DTG  )

CAPS Members Bullish on ISRL Also Bullish on

ExxonMobil (NYSE: XOM  )

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 88% of the 177 members who have rated Isramco believe that the stock will underperform the S&P 500 going forward. These bears include tenmiles and mrindependent, both of whom are ranked in the top 2% of our community.

Earlier this summer, tenmiles couldn't make sense of Isramco's soaring price, which is even higher today:

This one looks quite suspect. Appears to be trading in sympathy with Isramco LP in Israel which had a major natural gas find, but apparently [Isramco's] participation is small (8%). Seems overdone -- seller at $130.

In a pitch from last month, mrindependent elaborates on those bearish beliefs:

From period to period, the earnings of this company make no sense, but the long-term picture is clear. This company is not consistently profitable and it is not worth [20] times book value. The stock is incredibly volatile because the company trades on hopes and dreams. I will end this pick at some point when I have a score of 7 points or more -- and I will try not to sweat if the stock gyrates upwards for awhile.

What do you think about Isramco, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Petrobras is a Motley Fool Income Investor pick. The Fool's disclosure policy always gets a perfect score.


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Related Tickers

2/14/2012 4:00 PM
ISRL $85.05 Down -3.38 -3.82%
Isramco, Inc. CAPS Rating: *
PALM.DL $5.69 Down +0.00 +0.00%
Palm CAPS Rating: *
PBR $29.03 Down -1.11 -3.68%
Petroleo Brasileir… CAPS Rating: ****
XOM $84.67 Up +0.25 +0.30%
ExxonMobil Corp CAPS Rating: ****
BP $46.47 Down -0.90 -1.90%
BP p.l.c. (ADR) CAPS Rating: ****
CVX $106.49 Up +0.11 +0.10%
Chevron Corp CAPS Rating: *****
DTG $74.41 Down -1.24 -1.64%
Dollar Thrifty Aut… CAPS Rating: *

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