Based on the aggregated intelligence of 160,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, Seabridge Gold (NYSE: SA ) has received the dreaded one-star ranking.
With that in mind, let's take a closer look at Seabridge's business and see what CAPS investors are saying about the stock right now.
Seabridge facts
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Headquarters (Founded)
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Toronto, Canada (1979)
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Market Cap
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$994.4 million
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Industry
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Gold
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Management
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CEO Rudi Fronk (since 1999)
CFO Roderick Chisholm (since 2004)
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Return on Capital (Average, Past 3 Years)
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(4.5%)
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Price-to-Earnings (SA and S&P 500)
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94.3 and 19.5
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Cash/Debt
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$14.5 million / $0
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Highly Rated Gold Alternatives
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Yamana Gold (NYSE: AUY )
Freeport-McMoRan (NYSE: FCX )
Taseko Mines (NYSE: TGB )
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Highly Rated Canadian Stock Alternatives
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Oilsands Quest (NYSE: BQI )
Canadian Natural Resources (NYSE: CNQ )
Toronto-Dominion Bank (NYSE: TD )
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 18% of the 493 members who have rated Seabridge believe the stock will underperform the S&P 500 going forward. These bears include All-Star goldminingXpert, who is ranked in the top 1% of our community, and Option1307.
Just last month, goldminingXpert showed a high degree of skepticism over Seabridge's "prospects":
Their chief activity appears to be paying their salaries and handing out stock options. Have fun buying the mining company that doesn't mine anything and is just waiting (in a Godot-like manner) for a buyout from on high. ... P.S. The company's name is an accurate disclaimer of where your investment dollars travel ... out to drown in the sea across a bridge of despair.
In a pitch from just last week, Option1307 also question the golden opportunity:
My problem with [Seabridge], is that they have zero (0) proven gold reserves and yet they trade as if they were the best thing since, well ever. They have yet to prove they actually have gold much less actually mine it. When and only when they start having a significant revenue stream and, this is a stretch, become profitable will I review my position.
What do you think about Seabridge, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!
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