If you’re looking for a big gain on a market upswing, look to the beta
SmallCapPower | October 3, 2016: The beta of a stock is the response variable that measures how a particular stock reacts in relation to the market as a whole, and is essentially a measure of how risky a stock is. The simplest way to determine a stock’s beta is through the equation of the capital asset pricing model. For this you simply subtract the risk-free rate (the interest rate for the 10 year U.S. Treasury Bond) from the average return of the stock, and then divide it by the risk premium (the market average return minus the risk-free return). If the beta is higher than 1 the stock is more volatile than the market and will increase in value faster than the market grows, if the beta is 1 it value moves with the market, and if the beta is less than 1, it is less volatile than the market. The higher the beta generally means the higher the growth when the market is in an upswing, and the stocks on our list have definitely lived up to that.
Rupert Resources Ltd. (CVE:RUP) – $0.86
Rupert Resources Ltd. is a gold exploration and development company that is engaged in the acquisition and exploration of mineral properties in Canada. The Company is seeking out mineral exploration and evaluation opportunities and has projects located in Ontario and British Columbia. The Company’s exploration and evaluation assets include Pahtavaara gold mine, Gold Centre Property and Surf Inlet Property. The Pahtavaara Mine is located in the Central Lapland Greenstone Belt in Northern Finland.
- Market Cap: $70.54 (mm)
- Beta: 6.73
- YTD Price Change: +2,766.7%
Rock Tech Lithium Inc. (CVE:RCK) – $1.17
Specialty Mining & Metals
Rock Tech Lithium Inc. is a Canada-based mineral exploration company that holds an interest in the Georgia Lake lithium project in the Thunder Bay Mining District of Ontario. The Georgia Lake project consists of approximately 80 leases and approximately 20 claims covering approximately 4,590 hectares. The Company has an indicated resource estimate of approximately 3.19 million tons grading approximately 1.10% lithium oxide and an inferred resource estimate of over 6.30 million tons at 1.00% lithium oxide.
- Market Cap: $28.09 (mm)
- Beta: 6.41
- YTD Price Change: +2,240%
Niobay Metals Inc. (CVE:NBY) – $1.10
Niobay Metals Inc, formerly MDN Inc, is a Canada-based mineral exploration company. Its business consists of acquiring, exploring and evaluating mining properties. The Company holds interests in properties located in the regions of Quebec and Ontario in Canada, and in de Lake Victoria Goldfield in Tanzania in East Africa. It focuses on metals, with a specific interest for properties containing niobium. The Company holds interest in the James Bay Niobium property in Ontario, Canada.
- Market Cap: $34.26 (mm)
- Beta: 3.57
- YTD Price Change: +1,366.7%
Silver Bear Resources Inc. (TSE:SBR) – $0.27
Silver Bear Resources Inc. is a Canada-based company engaged in the business of acquisition, exploration, evaluation and development of precious metal properties. The Company’s segments include a property in the Russian Federation (Mangazeisky) and a corporate office in Toronto, Canada. The Company’s principal asset is its right to explore and develop the Mangazeisky property, which is located in the Kobyask Ulas district, within the north-central portion of Yakutia of the Russian Federation, approximately 400 kilometers north of the capital city of Yakutsk, over 280 kilometers southwest of the village of Batagai in the Verhoyansky district and approximately 240 kilometers northeast of the village of Sangar in the Kobyask Ulas district.
- Market Cap: $435.97 (mm)
- Beta: 4.44
- YTD Price Change: +1,250%