The three companies in this group, China Precision Steel Inc (NASDAQ: CPSL), Polymet Mining Corporation (AMEX PLM), and Vantage Drilling Company (AMEX; VTG) have all staged strong spikes of late and appear to be holding their own even when bearish market sentiments prevail.

China Precision Steel had a nice spike in early June when it picked up 10%, moving from $0.90 to $1. It held that range, within a cent or two, for much of the rest of the month, and this month the stock moved from $0.98 to over $1.15, a gain of 17%. Todays broader market bearishness has brought it back to the $1.06 level, but this stock keeps pushing for once held $1.60 range. Getting off the 90 cent floor and heading towards $1.20 is a good indicator of support to make that happen. It may be an incremental ascent, but still… There will be a new Chairman soon and the Company ‘is’ signing new contracts. I think it’s undervalued at its current price.

The spike at rare earth miners Polymet Mining has shown some real legs: the stock was trading in the $1.31 range in mid June and is currently trading in the $1.87 range, a three week gain of 42.75%. That’s a spike. The question is; can the stock hold it or even better, turn the gain into a near term (3 mos) surge? Well, there are virtually no short sellers to hold it down and it does have positive EPS projections to encourage new buyers and aggregators, so I’m going to say; Yes, with a noted exception. Rare earth stocks tend to move up and down in a ‘clump’ with each movement in the industry: Felt. If it can establish a little independence from ‘the pack’ it can sustain a surge higher.

And the spike at independent oil and gas company Vantage Drilling Company also has some legs. The stock was trading as low as $1.65 in mid June on a dip and topped $1.90 earlier this week, a gain of 15% in three weeks. The stock is currently trading in the $1.84 range after a little normal profit taking and todays broader market downturn. With few short sellers and positive sales projections, Vantage Drilling has picked up the support of financial pundits who think it somewhat undervalued. I agree, this is a $2 stock just waiting for its chance to continue its current bounce back.

I haven’t, don’t, and do not intend on holding any of the companies mentioned in this article.