Value Microcaps Motherboard

[micham2012]

TGA:

Positive article from Seeking Alpha:


http://seekingalpha.com/article/1865311-overblown-geopolitical-risks-make-transglobe-energy-a-compelling-investment?source=email_rt_article_readmore


"While the stock rebounded since hitting its 52-week low back in June, it remains deeply undervalued relative to industry peers Occidental Petroleum Corporation (OXY) and Marathon Oil (MRO), whom trade at 5.9x TTM EBITDA and 3.4x TTM EBITDA, respectively, as well as the industry average of around 5.2x EBITDA. Similar to TransGlobe, both Occidental and Marathon are exposed to geopolitical risk as they operate in both North Africa and the Middle East. Assigning TransGlobe a modest 3.0x TTM EBITDA implies a market value of $896mm and a per share value of ~$12, offering investors a 38% upside. A multiple of 3.0x EBITDA is warranted by the arguments presented in my thesis pertaining to the irrationality behind the market's fear concerning Egypt's political turmoil, while simultaneously still accounting for the inherent geopolitical risks tied to operating in Egypt."