Hemisphere Energy Corp V.HME

RE:Recommendation

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And a follow up later in the week. GLTA

We think WCP and TOU could be complementary names for small-cap energy exposure. We prefer TOU due to its more aggressive capital return policy over the years. TOU is also focused on natural gas, which could make it a good complement to the oil-focused IMO/CNQ.  In addition, for more aggressive investors, we also like HME, the company possesses a strong balance sheet and a decent record of growing dividends and special dividends. HME is trading at a cheap valuation relative to its oil peers. We think HME is an interesting, under-the-radar oil name. However, the company is quite small, with limited trading volume, which investors need to be aware of.