Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, gold explorer Banro (AMEX: BAA ) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Banro's business and see what CAPS investors are saying about the stock right now.
Banro facts
| Headquarters (Founded) | Toronto (1951) |
| Market Cap | $701 million |
| Industry | Gold |
| Trailing-12-Month EBITDA | ($10.4 million) |
| Management | Chairman/CEO Simon Village CFO Donat Madilo |
| Return on Equity (Average, Past 3 Years) | (2.9%) |
| Cash/Debt | $30.5 million / $0 |
| Competitors | AngloGold Ashanti (NYSE: AU ) |
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 95% of the 216 members who have rated Banro believe the stock will outperform the S&P 500 going forward. These bulls include elks42 and ablengata. �
Earlier this fall, elks42 summed up the opportunity:
They have some cash, plenty of assets. ... Now if they ever actually start churning some revenue and positive earnings this baby will soar. But, it looks like most of their cash comes from sale of stock, so don't be surprised if until the point they start generating revenue/earnings, your stock keeps slowly creeping up, then drops via dilution, rinse and repeat.
In fact, Banro currently boasts $30.5 million in cash on its balance sheet with zero debt. Meanwhile, gold producers like AngloGold Ashanti, Barrick Gold (NYSE: ABX ) , and Newmont Mining (NYSE: NEM ) sport debt-to-equity percentages of 52%, 55%, and 25%, respectively.
CAPS member ablengata elaborates on the bull case:
The big "IF" in this investment is whether or not the Congo will be stable enough for Banro to proceed with their operations; I think that it will. With the proceeds of the Twangiza mine, [Banro] plans to develop a plethora of other properties. This will provide a strong future stream of precious metals and revenue. ... [Banro] will succeed in due time. Just give them at least a year from now.
What do you think about Banro, or any other stock for that matter? If you want to retire rich, you need to put together the best portfolio you can. Owning exceptional stocks is a surefire way to secure your financial future, and on Motley Fool CAPS, thousands of investors are working every day to find them. CAPS is 100% free, so get started!
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