Gains await the smaller players

Many investors are avoiding the resources sector but smaller companies are better placed to capitalise on the opportunities of the tight oil market

The recent woes of Regal Petroleum and White Nile might seem to act as confirmation that the resources sector is best avoided. Combined with a large number of IPOs, sentiment has dampened considerably and made investors bearish about froth at the top of the market. A recent survey of Aim investors found that more than a quarter would actively shun the resources sector. But smaller companies may be better placed to capitalise on the opportunities afforded by the tight oil market. I hold this view because the circumstances surrounding the recent rise in oil prices have been singular. In s...