This is a great article on the new CEO of Mongolia Growth Group by Jon Springer over at Forbes. The new CEO has been serially successful in developing real estate in emerging markets. This is looking like a great addition and completely changes the outlook for this company. Here are some highlights that interested me from Jon's article:
While most developing countries in Asia must market their economic growth based on a pitch for growing industrial development on the back of low cost labor, Mr. Byrne thinks Mongolia has a stronger sales pitch. He sees Mongolia growing its economy on the back of mineral wealth and then economic diversification pivoting off the development of that mineral wealth. "The only place with equal potential is Qatar: small population, strong resource base and a small GDP base."
Mr. Byrne has done restructuring at his previous posts going back to his days at Red Mountain Retail. He plans to modify Mongolia Growth Group's holdings with diversification targets of 60% of properties in a stable investment stream and 40% for development. Among Mongolia Growth Group's approximately 70 properties, there are a number he plans to dispense with to then pursue organic growth from properties and projects that follow his updated vision and strategy.
Mr. Byrne believes a reasonable fair market value for Mongolia Growth Group shares is between $4 and $5, double the current market value. In the interim, he sees the heavy lifting as the current restructuring and building the company's value up to half a billion dollars.
This guy is not messing around as he is talking about taking this company to over a billion dollar value. It sounds like he has the background and he must see the potential to re-locate from Dubai to Mongolia. Expect news flow and deals in the near future. Harris always said he expected to turn the CEO over to a more qualified person at some point. This appears to be an inflection point for the company and I am optimistic in the future. I have been slowly acquiring shares over the last year or so as they got cheaper. I will continue to do so. Please consider going over to Forbes and following Jon's articles as he is one of the few people in the mainstream media that is actually paying attention to frontier markets. The the access to interviews and connections he has would cost any of us tens of thousands of dollars to duplicate. Lets show the editors at Forbes that there is a market for this information.
Disclosure: I am long MNGGF.