INVESTMENT OPPORTUNITIES AROUND THE WORLD

Friends are constantly asking me, “Where is a good place to put some money or invest in this changing world?” We normally don’t try to give advice, but our perspective around the world does give some interesting investment insights. We have seen areas that appear to be good investment opportunities, so in this issue, we will share some insights. We offer this information at no charge, and as the old adage says, it may only be worth what you are paying for it. But, here’s our take on a few interesting investment sectors.

While the dollar has dropped 28% in less than 24 months, some sectors of the Asian economy have shown strength and stability. Millions of citizens of India have reduced their U.S. Dollar holdings and are holding Indian Rupees, Euros, or other currencies instead, and this strategy has rewarded them liberally. Those who invested in Euros just before the Iraq War, have made almost 30% in gains. Those who invested in gold at the same time have seen 25% to 35% appreciation, depending where they “got in”.

INDIA LOOKS GOOD: The booming economy in India has made investment in telecommunications, manufacturing and real estate attractive investments with higher than average chances of appreciation. With a GDP growth of 7 to 8%, and international reserve accounts that have grown from $20,000,000,000 to $107,000,000,000+ in just 5 years, India is an excellent place to consider for long term growth.

CAMBODIA: The textile industry of Cambodia continues to expand, supported by a stable economy, cheap labor, and a hard working and productive work force. Hun Sen has provided the one thing Cambodia, and business like, stability. Tourism is creating an influx of visitors, and all of the travel industries there have potential for growth.

MONGOLIA: We opened offices in Mongolia several months ago, and the “Grand Opening” was attended by members of Parliament, members of the Supreme Court, and most of the significant leaders of business and industry. U.S. Ambassador, Pamela Slutz spoke and was supportive and complimentary of our company (BBA Mongolia) there. We are investigating and researching many investment opportunities in Mongolia, because it is a growing, some say booming economy. With over 20 new commercial buildings under construction in the capital city alone, there is a large flow of cash in the economy. We have identified several areas for investors:

1. Housing and apartment purchases. There is strong demand for ‘privatized’ and ‘fee simple’ residential housing. As an investment, it appears that these properties are appreciating from 8% to 20% per year, depending upon the location. Plus, they can be rented for cash flows that are more than double debt service requirements. These are low risk investments with good appreciation and income potential. BBA Mongolia can locate, purchase, and even renovate or build these for qualified investors. Plus we have staff and offices on the ground to manage them as well. This is a “no brainier” and has become a source of appreciation for those who have invested in this sector.

2. Real Estate. The legal landscape is gradually making fee simple ownership in a Western style system more likely. In the meantime, those who gain control of real estate for future commercial development, through permits with government officials, have excellent, almost certain chances of appreciation.

3. Manufacturing. BBA Mongolia is an investment participant with a company that manufactures portable generators to supply electricity to the 65% of the population that lives in the countryside, intents called Ghers. This is needed, environmentally efficient, and there is a potential market for over a million of these generators. Plus, it provides inexpensive power for the people who need it most. We can arrange investments in this venture if you have a taste for environment sensitive and altruistic business projects that look to be potentially profitable.

4. Mortgage Companies and Lending "Finance Companies". We have qualified management for a new mortgage company and finance company that specializes in apartment loans, and secure consumer loans. These are low risk loans, almost no defaults (less than 1% per annum), and those are well collateralized. There is $500,000 of capital stock available, projections indicate 10 to 16% return on assets.

5. Bank Capital Stock. BBA Mongolia has researched a bank, well managed, good profitability, that needs to raise $2,000,000 in additional capital. We will require a board position to monitor activities of the bank and will check operations and financial statements continuously. A large investor ($500,000 or more) can probably be afforded a personal position on the board of directors if desired. We estimate 25% to 40% appreciation in the stock over a 5 to 7 year period, not including dividends, with additional incentives such as board fees and other perks as allowed by law.

6. Conservative and safe Certificate of Deposit (Time Deposits). We have pre-qualified 3 banks in Mongolia, as the safest depositories in the nation. They are characterized by stable earnings, high capital ratios, and good regulator examination reports. Regulators tell us that there is virtually no possibility that these banks would be considered at risk. Depending upon the timing, we can get interest rates of 12% to 15% interest for time deposits. This is because that the vast majority of loans in Mongolia are short term loans that require much higher rates. The policy of the Mongolian government has been to provide back up security for every investor in bank accounts and no individual investor has ever lost money in a personal time deposit account in the banks of Mongolia. We will help you open the accounts and will monitor the activities of the banks to assure safety and security of your investment.

7. Construction of income producing properties. BBA Mongolia has reviewed a number of projects and will invite participation in the projects to qualified individuals. The income potential and growth potential appear to be sound.

8. Infrastructure. The potential to participate in companies to build infrastructure for the country of Mongolia are substantial. We can review these with you on an individual basis.

9. Seed, production, harvesting and processing. Mongolia is a rich source for some specific and unique edible seed foods, and there is an opportunity for investors who are knowledgeable about the food and seed industry to participate in an attractive new growth company. Details available on an individual investor basis. $450,000 in stock is available.

These are just a few ideas, among the dozens that we have reviewed, screened and tested for economic viability. Of course, there are never guarantees on any investment and you should only invest in areas that you feel qualified to make good judgments in. But our research is intended to seek out better opportunities and pre-qualify. We will recommend only investments that we believe in strongly enough to personally invest in, and only to investors qualified to make such investments. We always recommend that you make a personal visit to meet your people and see your investment and speak to a local attorney to assure that your position is safe. 

IF YOU DESIRE MORE INFORMATION OR WOULD LIKE OUR ASSISTANCE, WE WILL HAVE A PUBLIC MEETING APRIL 1, 2004, AT THE FORT WORTH INTERNATIONAL CENTER OFFICES IN DOWNTOWN FORT WORTH, TEXAS, USA, ON 7TH STREET (the old Bank of Commerce Lobby) FROM 4 TO 6 PM. OR YOU CAN CONTACT US BY E-MAIL AT: bbamongolia@mongol.net or call our offices in Mongolia at 976-11-315990 or at our U.S. offices at 1-817-738-9595.