U.S. Silica Holdings
It might be hard to imagine that you can make good money investing in a company that specializes in sand, but U.S. Silica Holdings stock more than doubled in 2013 and is up more than 70% year to date. It provides sand to the industrial and energy sectors, with nearly three-quarters of its earnings recently coming from its oil operations. That's partly due to the controversial practice of fracking, in which sand is used to prop open spaces so that oil and gas can be captured. Demand has been so strong that the company recently ran out of sand and is establishing new mines. Risks include increased fracking regulations that decrease demand for sand.
With a dividend yield of 1% and a forward P/E ratio near 19, U.S. Silica Holdings seems rather attractive, as it's enjoying robust growth rates. If the price seems a bit too rich for you, considering its risks, consider adding it to a watchlist to take advantage of an eventual pullback. Last year, Forbes named U.S. Silica Holdings one of America's best small companies based on its performance.
It might be hard to imagine that you can make good money investing in a company that specializes in sand, but U.S. Silica Holdings stock more than doubled in 2013 and is up more than 70% year to date. It provides sand to the industrial and energy sectors, with nearly three-quarters of its earnings recently coming from its oil operations. That's partly due to the controversial practice of fracking, in which sand is used to prop open spaces so that oil and gas can be captured. Demand has been so strong that the company recently ran out of sand and is establishing new mines. Risks include increased fracking regulations that decrease demand for sand.
With a dividend yield of 1% and a forward P/E ratio near 19, U.S. Silica Holdings seems rather attractive, as it's enjoying robust growth rates. If the price seems a bit too rich for you, considering its risks, consider adding it to a watchlist to take advantage of an eventual pullback. Last year, Forbes named U.S. Silica Holdings one of America's best small companies based on its performance.