As we approach the halfway point for 2012, now's a good time to look back at what's happening with 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 North American Palladium
Stats on North American Palladium
|2012 YTD Return||(14.9%)|
|Market Capitalization||$378 million|
|Revenue, Most Recent Quarter||$44.7 million|
|Year-Over-Year Revenue Growth, Most Recent Quarter||18.2%|
|Net Loss, Most Recent Quarter||($0.9 million)|
Source: S&P Capital IQ.
Why is North American Palladium losing in 2012?
North American Palladium has had a tough time of it for a while now. In 2011, steadily dropping palladium prices helped contribute to a 65% fall for the stock. Because North American Palladium's production costs are fairly high, the company is especially vulnerable to lower bullion prices, and even minimal further declines over the past six months have exacerbated the problem and sent the stock to levels it hasn't seen since the depths of the financial crisis three years ago. Moreover, its Vezza gold mine, which is scheduled to start commercial production at the end of the month, faces falling gold prices as well.
Improving economic conditions for automakers were supposed to boost demand for palladium. But even though Ford
Rival Stillwater Mining
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Ford. Motley Fool newsletter services have recommended buying shares of General Motors and Ford, as well as creating a synthetic long position in Ford. 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.