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Transglobe Energy - Value In Oil Without The Trap

"Oil will eventually go back up."

This is the cumulative mantra of value investors in 2015. Lured by low P/E and low P/B ratios, they wait for the inverted forces of gravity to take course. However, the bounce back may not be as quick as the fall down. With the average break-even costs for shale and tar sands companies at around $60, it could be long, painful recovery. The dreams of making a fortune from rapid oil recovery will be slashed faster than Transocean's (RIG) dividend. In an effort to avoid the value trap of oil companies, why not find one that can stay profitable if oil continues to hover between $40 and $60 per barrel? Why not find a company that has a great chance of sustaining its dividend in the mean time? TransgGobe Energy (TGA) is one such company.

TGA is a Canadian small cap oil exploration… Read More …