Year to date, small-capitalization equities have rallied
alongside the broad market, as bullish momentum continues to be a
dominating force and investors become more risk tolerant. These
stocks typically offer more promising long-term growth potential
than their large-cap counterparts, however, investors will have to
take on slightly higher levels of risk and volatility. Already this
(INDEXRUSSELL:RUT) has surged more than 20%, urging investors to
take a closer look at these promising securities.
For those looking to make a small-cap play in the commodity space,
here are four compelling US-listed options (data as of July 24).
Who Needs Big Oil?
Core Laboratories NV
: Headquartered in Amsterdam, this small-cap oil and gas equipment
and services company has been in business since 1936. Core
Laboratories specializes in their proprietary and patented
reservoir description, production enhancement, and reservoir
management services. The company operates in more than 50 countries
and provides services to increase total recovery from existing
fields to some of the world's top oil companies. The stock's EPS is
around $4.82 and currently yields 0.80%. Year to date, Core
Laboratories shares have surged nearly 35%.
CVR Energy, Inc
): This Texas-based firm engages in petroleum refining and nitrogen
fertilizer manufacturing activities across the United States. CVR
owns and operates coking medium-sour crude oil refineries and crude
oil gathering systems in Kansas and Oklahoma. The company also owns
a pipeline system that transports crude oil from Caney, Kansas, to
its refinery. The stock currently boasts an EPS of $6.51 and a
whopping 6.60% yield. So far in 2013, CVI has rallied more than
Junior Miners - Diamonds in the Rough
Alamos Gold Inc
): Based in Toronto, this small-cap gold mining company is
relatively young, having started operations in 1994. The company
owns the 30,536 hectare Salamandra group of concessions located in
the state of Sonora, Mexico. Included in the Salamandra group is
the Mulatos Mine and several other prospective exploration targets.
Alamos also just recently acquired Orsa Ventures Corp, another
junior exploration company with operations in the Western US (which
includes the Qauartz Mountain Property in Oregon). But as with all
mining companies in 2013, Alamos has suffered losses this year with
the stock shedding nearly 20% year to date.
Silvercorp Metals Inc
): Headquartered in Vancouver, this junior miner's operations is
focused on China's vast unexplored geological potential. After
first entering China in 2003, Silvercorp has grown to be the
country's leading silver producer; in 2011, the company produced
5.3 million ounces of silver, as well as 69 million pounds of lead
and 16.3 million pounds of zinc. Year-to-date, however, the stock
has fallen nearly 40%. Silvercorp shares currently yield 3.50% and
hold an EPS of $0.16.
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Editor's note: This article by Daniela Pylypczak was originally