This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Small-Cap Stocks to Fuel Your Portfolio

Stocks in this article: MIND MTRX NR CLMT HEP PAA

MILLBURN, N.J. ( Stockpickr) -- Recently crude oil prices have spiked, creating a series of macroeconomic concerns, of which rising gasoline prices, the increased potential for a recession and a reversal of recent stock market gains are taking center stage.

I attribute the rise in crude oil prices to a series of concurrent events and conditions such as:

1. Concerns over mounting tensions associated with the nuclear weapons threat coming out of Iran.

2. Trapped crude oil, which is unable to make itself from Canada or Oklahoma to the coastal refineries in the U.S.

3. Lack of a comprehensive, cogent and practical energy policy from the Obama administration in Washington. Just recently, the administration rallied Democratic senators to reject a Republican amendment to a transportation bill, which would mandate the construction of the Keystone XL oil pipeline.

>>7 Stocks George Soros Loves

4. A failure of the CFTC to prevent and curb excessive speculation.

5. The media. Apparently, according to the local, national and cable news, gas prices at the pump are going to $5. That prognostication is based on speculation and not fact or rigorous research.

Points 1, 4 and 5 are, in my opinion, transitory or short-term in nature. I find points 2 and 3 above to provide the greatest opportunity from an investment point of view. This nation cannot get the raw product to the refineries fast enough or efficiently. Thus we need to improve both oil and gas storage and transportation capabilities. In the meantime, existing companies that provide storage and transportation are at an advantage. Furthermore, the aging oil and gas infrastructure will require repair and maintenance.

One conclusion could be that the integrated oil companies might benefit from the increase in crude prices. However, those benefits will be offset by pain caused from a multi-year trough in natural gas prices. Those companies are to be avoided.

Hence, I am seeking small-cap stocks that provide opportunities in what is considered to be the midstream part of the oil and gas industry. Here are five small-cap opportunities in the oil and gas sector.

1 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs