As 2011 comes to a close, it's a great time to look back at what happened to the stocks that interest you. By making sure you know the important things that a company accomplished -- as well as the setbacks it experienced -- you can make a better decision about whether it's a smart investment for your portfolio.
Today, let's take a look at Star Scientific
Stats on Star Scientific
|Year-to-Date Stock Return||18.5%|
|Market Cap||$312 million|
|Total Revenue, Trailing 12 Months||$960,000|
|Net Loss, Trailing 12 Months||($22.7 million)|
|1-Year Revenue Growth||24.7%|
|Cash / Debt||$10.4 million / $5.7 million|
Source: S&P Capital IQ.
How did Star Scientific do this year?
Star Scientific is a tiny player in a huge industry. Tobacco is dominated by big companies like Altria
But by focusing on alternatives, Star Scientific has actually been ahead of the curve. With smoking becoming a social stigma both in the U.S. and abroad, even the big companies in the industry are looking at smokeless products to help carry profits going forward.
The problem, though, is that Star Scientific hasn't yet found a way to become profitable. For instance, in the company's second-quarter results, revenue dropped 22% -- not a good sign for what's supposed to be a growing company. Even after big cost-cutting measures and moves to create a vastly improved balance sheet, the company is still producing some big losses. Moreover, the threat that Star Scientific's products may well be subject to just as stringent regulation as traditional tobacco looms large over its future prospects.
Investors are clearly hoping for huge growth from Star Scientific in the coming years. For now, though, the big dividends of Lorillard
Tobacco technology isn't the only innovative idea you can invest in. Read about what we think is the only stock you need to profit from the new technology revolution. It's yours free just by clicking here.
Click here to add Star Scientific to My Watchlist, which can find all of our Foolish analysis on it and all your other stocks.
Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Altria Group and Philip Morris International. Motley Fool newsletter services have recommended buying shares of Philip Morris International and creating a bear put ladder position in Lorillard. 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 Fool has a disclosure policy.