The Dow Industrial Average has gained more than 4% this year, but investors who put their money in a set of little-known stocks are a lot richer.
Silver miner Alexco Resource (AXU) has soared more than 432%, while small-capitalization biotechnology stock CoLucid Pharmaceuticals (CLCD) is up more than 319%. Meanwhile, oil and gas company Resolute Energy (REN) has rocketed more than 648% higher this year, and mining play Teck Resources (TCK) has shot up more than 425%.
Let's look at why these hitherto unrecognized stocks have surged.
1. Alexo Resource
Despite its big increase this year, penny stock Alexco Resource apparently has room for another 58%-plus increase, as analysts have a 12-month median price forecast of $2.47 a share.
The company has been riding high on the success of its mining initiatives in the Bermingham deposit area of the Keno Hill Silver District. It has raised two rounds of non-brokered equity financing to pay for exploration and development activities on the company's assets.
In addition, the company's mine-related environmental services activities are doing well.