2-Star Stocks Poised to Plunge: Mentor Graphics?

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, electronic design automation specialist Mentor Graphics (MENT) has received a distressing two-star ranking.

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

Mentor facts

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 24% of the 139 members who have rated Mentor believe the stock will underperform the S&P 500 going forward.

Just yesterday, one of those bears, fellow Fool Matthew Argersinger (TMFMattyA), succinctly summed up the underperform case for our community:

Though the company is making strides in the aerospace and automotive industries, it's still heavily tied to the ups and downs of the semiconductor market. At best I think this company is a market performer, but the reason for my thumbs down here is management. Both the CEO and CFO have presided over a company that has gone nowhere in terms of market value for nearly 20 years. They own around 1% of the outstanding stock, but have instituted a poison pill provision that pays them nearly $25 million in the event of a change in control, or if an outside party acquires 40% of the stock or is successful in electing independent, non-incumbent members to the board. Shameful. Strong underperform.

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Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.