December 3, 2017
December 3, 2017


Thanks for the site. It’s a great resource and I look forward to your posts. In the past you said that you get a lot of ideas from your intelligent friends. For those of us who don’t have intelligent friends, could you share some of the publications that you frequently read or subscribe to?

A few of them are in friends of kuppy on the homepage. I mostly read history books quite honestly. I would always recommend reading everything possible. There’s no way to know when something will interest you. zerohedege, seeking alpha, sumzero, valueinvestorsclub, etc are all great resources and free as well.

Kuppy, my broker shows a P/e ratio for MERC of 2.9
I know earnings are due in a few days. Is this above ratio accurate at this moment and if so, is this not so dirt cheap it is the gift of all gifts to buy a stock with a P/e ratio of under THREE with the obvious demand for the product as you’ve outlined ?
thank you !!

There are lots of moving pieces in determining the true earnings number for a company, but this sure is cheap. Make sure you adjust for the new sharecount as they just converted a bunch of convertable shares. I just bought some more in the low 9’s.

Kuppy, I get the impression you think Trafigura dumped their AAG position in a single block, but I can’t find any unusual trading volume for AAG. Can you say how you got the impression that’s what happened?

That’s what the filing implied. A lot of large transactions are done privately and away from the market.

Considering opening a BDsec account & will probably do so, but was wondering what kind of light you can shine on some of the better Co’s in Mongolia. I’ve read your thoughts on BDsec itself & they are great. Would it be too much to ask for your top 5 or so names out there with a sentence or two to go along with it? Caveat Emptor is understood. I’ve read the research various firms have produced, but am not overly impressed. Should one look towards IPO’s given the liquidity you can get on an offering, less the 2% transaction costs? There’s little doubt in my mind that this market has to go considerably higher just to offer some level of liquidity to Frontier investors.

On a side note, I just read the quarterly letter for Terra Partners, one of the more successful Frontier Funds… And they do not own Mongolia in any way as of yet, (despite being invested in Estonia, Ukraine, Tunisia, Barbados, to name a few). It would seem funds like these will be compelled to invest in one of the worlds fastest growing economies, one way or another. Thank You.

At some point, all emerging market investors will have to own some Mongolia as it is going to be one of the fastest growing markets out there.

I feel funny giving a top 5 list as there are only 3 companies now with audits. How can I talk about a company that I cannot even pretened to understand as the numbers may not be accurate? Besides, many of these companies trade a few hundred dollars worth of shares a day. If you really want to know about the market here, the only way to do it is to get on a plane and try to figure it out unfortunately….

Peter Gianulis’ Greek solution is for what’s best for Greece, not for the Greek political leadership. Without advice on how it will help one of the parties to get re-elected, Greece’s leadership can’t act on this stuff. They’ve hit the iceberg of reverse compounding on debt and party leadership won’t deploy the lifeboats until they are guaranteed one. Moammar Gadhafi could give them the names of some good intermediaries.

Yup. Politicians only know how to make problems worse…..They are never the solution–just part of the problem.

apparently EGF is one of John Doody’s picks and signifantly undervalued. What do you think about holding EGF through Athens listed Ellaktor group, which holds 20% of EGF? Current market cap of Ellaktor is around 470 M EUR and the 20% stake in EGF of Ellaktor is valued at around 340 M EUR.

P.S.: Full disclosure: I hold Ellaktor as well as European Goldfields. I somehow could not buy Ellaktor through interactive brokers and therefore chose a local broker in Germany. Othere interesting opportunities in Greece are in my opinion: OPAP, the Greece betting giant, trading at around 33% EBIT/EV and nearly no capex requirements as well as Hellenic Telecom. (German telecom giant Deutsche Telekom paid 4x as much for their stake in Hellenic a couple of years ago, employees at Hellenic are very much overpaid, therefore there is a lot of streamlining potential). I own stakes in both companies as well.

I pass this along for readers who may find it interesting. There are lots of good opportunities in Europe currently. Stub assets are frequently cheaper than the direct play as you can get some extra value. I’m just thinking that I can possibly get these all cheaper at some point in the future… or maybe not.