09/23/2011
December 3, 2017
08/28/2011
December 3, 2017

09/09/2011

hi kuppy,
thanks for the great site & info–hope all is going well in mongolia–
question–any thoughts on Energold–they posted another record quarter and stock seems to be stuck?

Stocks can get ‘stuck’ at times. EGD really reminds me of GROW a few years back. It just seemed so obvious and every quarter the story got better and better. I just felt like it was so cheap that it was de-risked, so I ended up making it a massive position. Then it went up 15x for me, but first I had to wait for over 2 years as it did nothing….


AS YOU HAVE BEEN INTERESTED IN GOLD MINING COMPANIES, I W0ULD LIKE TO KNOW IF YOU HAVE EVALUATED “FRANCO NEVADA” AND ANY “JUNIOR GOLD MINING COMPANY FUNDS”
THANKS

I generally like the concept of royalty companies. I don’t know enough details on FNV. I’ve pretty much given up on mining companies as being too hard, so no idea on junior gold mining company funds.


Hi Kuppy. Do you think Mongolia Development Resources is an attractive way to invest in the Mongolian property market, and in the Mongolian economy’s growth overall? MDR’s Price/Book looks relatively attractive for an investment in Mongolia’s property sector.

MDR seems like an interesting investment to me and I like the guys running it. Marat seems like a smart guy. I don’t know all the details, so do your own DD.


Kuppy, Just for readers who don’t know, Trafigura’s AAG shares went to three buyers, the largest taking 7% of the company, which does not require reporting under Canadian rules. It’s possible that the three are acting in concert (I am TOLD that’s not very well policed in Canadian small caps), or it’s just possible that we have three deep-pockets owners replacing one.

I think it’s almost certain that all three are acting in concert. I view it as very shady business–but pretty typical of junior mining.


In reading your most recent responses and trying to gauge sentiment, I think we are at the stage where every cabbie and shoe shine kid know bullion (and NOT gold miner equities) is where to invest. This does seem like a prudent time to go contrarian, I just have this feeling people will want to pile into these @ 40 percent higher. Your thoughts, please, and thank you.

I think they’re both good investments. I don’t know which will do better. Thus far, I’ve favored the miners for the last 1000 pts higher in the price of gold and been prove wrong…..


Hi Harris,
Good to read that you are taking time to reflect on your ideas, as that seems to be one of the most important activities of good investing. My question regards IVO. Since initiating your position, how does your thesis stand today? Also, considering IVO has a termination trigger at $10, I presume that you did not think the VXX could get high enough to cause such event. What was your rational then and what is your rational currently?

Getting away is really great for my investment process. Before I started working on a full time project in Mongolia, I tried to get away for 2-3 weeks every quarter and go somewhere really remote so that I wouldn’t be tempted with the internet. You really need to get 100% away.

Let’s just say that my IVO thesis has thus far been rather flawed. Will it get to $10 and terminate? I don’t know. When I got back from the Gobi, I cut this position back very significantly and took the loss. I’m good and finding trends and riding them. Guessing the right price for volatility may just be outside of my circle of competence. It’s been an expensive lesson. Short VXX will work well over time, I don’t think I need extra exposure…


Kuppy,
I just sent you a message. After sending it, thinking about your post, it popped in my mind, why the hell would anyone take a vacation in the middle of the desert?
What drives you to do this?

Where else would you want to go on vacation??? I mean, my friends have seen most things in the real touristy places. If I have questions, I can see their pictures. Besides, The Gobi is quite beautiful in it’s own special way. I vacation to get away from things… If I’m in a big city some-place, everyone can still find me. Sometimes, you need to just get away and think things through without every data-point clouding your judgement.