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Mongolian Stocks Reach Nine Month High

|Includes:Mongolia Growth Group Ltd. (MNGGF)

The MSE index has now crossed the 16,000 level and is trading at a nine month high. The index has clearly broken out to the upside so my expectation is that it will trade higher as speculation that the recent reforms announced will take hold and the negative perceptions of Mongolia as an investment destination are reversed.

On a positive side note, the consortium of banks that lined up to finance OT phase two has extended the deadline to March 2014. If the banks are still willing to loan money to the project then I think that things are closer to being resolved then many think.

You will note that MGG has now dropped under $2.00 per share. I think this is tax loss selling and I am hopeful for a near term bottom as we get near year end. I will looking to continue to acquire at these lower levels.

Disclosure: I am long OTCPK:MNGGF.

Stocks: MNGGF