TGA - TransGlobe Energy: Discoveries Make A Cheap Investment Better

TransGlobe Energy (TGA) has long been mispriced by the market. It is not unusual for small companies to remain mispriced for a long time as the market is not as efficient with smaller companies as it is with larger companies. Still, there is much less risk investing in a basket of financially strong and growing smaller companies than companies that are leveraged to the price of oil. If something bad happens, a company with no leverage rarely gets into serious trouble.

Oftentimes, the strong balance sheet can be used to mount a comeback