Mongolia Growth Group: a Perpetual Call Option [Analysis]: "Investment Highlights:
An investment in MGG around the current price possesses nearly all the qualities we look for in a great long-term investment. These include: (1) a low valuation (2) a good, incentivized management team backed by a savvy board, (3) near to medium-term operating momentum and (4) multiple internal and external high-probability catalysts which we expect will drive substantial upside.
Other attractive attributes of MGG include:
A simple business model with an unlevered balance sheet and tangible assets
A strong competitive position in a rapidly appreciating niche market
Improving economics on an attractive and fast growing asset base
A high likelihood of experiencing meaningful improvements in profitability and cash flow
Leverage to strong expected growth in the Mongolian Economy
Relatively low correlation to the general market
Opportunity to deploy capital at high ROIC’s for an extended period of time
MGG owns city-center real estate assets in Ulaanbaatar, Mongolia (“UB”). Due to the development of the country’s mining sector and certain capital market related factors, we expect per capita income in the country to substantially increase over the next 5-10 years."
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