Investing in small-cap materials stocks can be tricky. The direction of the broader economy often plays a big role in their success, and notoriously unpredictable factors like mining output or commodity prices can often be key to maintaining margins. But equities.com's Small-Cap Stars, our proprietary list of those small-cap companies with metrics that are typically the most indicative of future success, gives investors a way to identify those companies that are best-positioned to ride out the tough times and make major gains in the good times.
Here's a look at the five top-performing basic materials Small-Cap Stars:
Charles & Colvard Ltd (CTHR)
Charles & Colvard Ltd gained 3.64% to $2.28. The gains came on a volume of 147,470 shares against an average daily volume of 60,319 shares. Charles & Colvard Ltd has had a trading range from $8.34 to $1.70 over the last year, it has a 50-day SMA of $2.11, and a 200-day SMA of $3.43.
Charles & Colvard Ltd is engaged in manufacturing, marketing and distribution of moissanite jewels, finished jewelry and fashion finished jewelry for sale in the international jewelry market.
Harvest Natural Resources Inc. (HNR)
Harvest Natural Resources Inc. gained 2.88% to $5.00. The gains came on a volume of 310,914 shares against an average daily volume of 212,120 shares. Harvest Natural Resources Inc. has had a trading range from $6.08 to $2.76 over the last year, it has a 50-day SMA of $4.76, and a 200-day SMA of $4.42.
Harvest Natural Resources, Inc. is an energy company engaged in the acquisition, exploration, development, production and disposition of oil and natural gas properties.
Rentech Nitrogen Partners (RNF)
Rentech Nitrogen Partners gained 2.51% to $15.11. The gains came on a volume of 125,260 shares against an average daily volume of 98,700 shares. Rentech Nitrogen Partners has had a trading range from $29.81 to $14.42 over the last year, it has a 50-day SMA of $16.31, and a 200-day SMA of $17.71.
Rentech Nitrogen Partners LP is a nitrogen fertilizer manufacturer. The Company produce primarily ammonia and urea ammonium nitrate solution, or UAN.
Constellation Energy Partners Llc (CEP)
Constellation Energy Partners Llc gained 2.3% to $3.12. The gains came on a volume of 299,465 shares against an average daily volume of 158,519 shares. Constellation Energy Partners Llc has had a trading range from $3.20 to $2.02 over the last year, it has a 50-day SMA of $2.66, and a 200-day SMA of $2.45.
Constellation Energy Partners, LLC is focused on the acquisition, development and production of oil and natural gas properties (E&P properties) as well as related midstream assets.
Goodrich Petroleum Corp. (GDP)
Goodrich Petroleum Corp. gained 1.49% to $18.40. The gains came on a volume of 1,478,620 shares against an average daily volume of 1,442,435 shares. Goodrich Petroleum Corp. has had a trading range from $30.52 to $11.80 over the last year, it has a 50-day SMA of $23.42, and a 200-day SMA of $20.19.
Goodrich Petroleum Corp is an independent oil & natural gas company engaged in the exploration, development & production of oil & natural gas on properties in South Texas, Northwest Louisiana & East Texas & Southwest Mississippi & Southeast Louisiana.
Equities.com's Small-Cap Stars - Stocks Made From Sterner Stuff
Investing in small-cap materials stocks is a high-risk, high-reward proposition much of the time. Often, the best way to approach the sector is simply limiting the number of misses as much as possible. And that's what the equities.com Small-Cap Stars system does.
By looking at past success stories among basic materials small caps, the Small-Cap Stars system can identify what level several dozen metrics were at among those successful companies and determine which of those factors were the most predictive of future success. We then precisely construct a carefully balanced screen through advanced statistical regression that will identify those companies that currently have the most in common with those that succeeded in the past immediately before those stocks took off.
Among the traits our system found the most revealing of a strong materials company were a low ratio of enterprise value to sales, a low effective tax rate, and a high ROE-cost of equity.
All data provided by QuoteMedia and was accurate as of 4:30 pm ET.