Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of gold producer Gold Resource
So what: The precious-metals sector at large is hardly suffering today, as producers from Silver Wheaton
Now what: Barron's highlighted management's lavish expenses and some creative accounting practices, along with a lack of proven gold reserves. "The Reids use a measure called 'mine gross profit' that ignores all construction and overhead costs," and has never reported positive GAAP operating cash flows, according to the article. Gold Resource trades for nearly 50 times trailing sales and 24 times book value, and I'm only surprised that it hasn't attracted more than an 11% short interest. I'm no gold bug, but I'd sleep far better having invested in a solid performer such as Silver Wheaton rather than Gold Resource.
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.