Member Info for investor33

Surely there is only one question here - is the local authority legally bound by the certification granted by central government ( ie the Mongolian cabinet ) which designated Block XX as being 'special purpose land. ' If you think that they can defy central government, then clearly Mongolia doesn't operate according to rule of law, but one of anarchy. If you believe that the local authority has to legally comply, then surely it's a matter of ' when ' not ' if.' It's taking time, but we know that everything takes time in Mongolia.

As the 6th July RNS stated ;

" The Company will now work with the central Land Agency and local authorities to complete the registration of the area and to sign the necessary contracts required by the regulations on the management of special purpose land. "

"Well we are in PM neve-never land aren't we! "

The difference between the buys and the sells a monumental £2,000 today. Clearly this explains why the share price is 4.5% down today - NOT.

@Badprophet

You mean just over £19,000 sold and just under £15,000 bought ?

Volume levels are almost non-existent, however the people who really drive the price action will move the bid and the ask as they see fit....Don't let reality intrude on your narrative though.

ShortShrift - I think that you post some of the most sensible posts on here. I tend to agree with nearly all that you say. And you are correct that with an AIM stock such as MATD the range is massively magnified in % terms compared to a FTSE 100 stock. That's why people who get panicky about this kind of thing should probably stay away from very thinly traded AIM stocks for their own mental wellbeing.

@Bowley - all ex-Soviet countries were or are the same. Over time it's lessened in countries who eventually joined the EU, such as Bulgaria and Romania, but the USSR communistic system was totally corrupt through and through. Organised crime went through the roof straight after the USSR fell, as the armies of people employed in the security services in the Soviet bloc turned their hands to organised crime instead. Soviet communism was a really foul disease.

Doc83 and HappyDazes - as it also mentioned in that article ;

"Since market makers are sometimes involved as both brokers and dealers, this creates a conflict of interest because, as brokers, they are supposed to provide clients with the best execution. In contrast, as dealers, they become the counterparties and are therefore trading for profit. Thus, investors should be cautious."

HappyDazes - I just smile at the people who buy shares in a company without even understanding who the biggest market participants are in that share. It's an incredible degree of naivety.

Doc83 - ok, let's take your approach and totally ignore the actions of the people who by far buy and sell the most shares in MATD. Do you really think the likes of you and me drive the short term price action ?

Can I repeat yet again that MMs execute trades on behalf of investors but also trade for themselves. And when they trade, they are not dealing in small amounts - accumulation or distribution is done in a specific way however, so as to not to be too obvious. As it says in an article I read recently ;

"Having all the necessary information about the market and its vertical analysis, market makers have more opportunities to make profitable deals than any other market participant."

As usual, an RNS presents the MMs with a golden opportunity to make a sudden run at the stops, and thereby hoover up shares cheaply without moving the price against themselves. A sharp initial drop in the price close to the open, followed by the usual ' miraculous ' recovery on the same day most likely....

Shortshrift - Apart from the first line, I agree with everything you wrote.

By the way, the reason why the people who really drive the price action ( not you and me ) test down to a support level, is to check how much selling pressure there is at that price level. If they are lucky they might catch some stops as well. What they don't want is for a load of sell orders to come in when the price starts to rise - particularly if they haven't yet accumulated all that they want to accumulate at as low a level as possible. You don't want the price to go up against you whilst you are still accumulating. Sometimes they test back to a support level several times whilst they gauge the reaction, and how much selling pressure there is out there. Right now the support is around 3p.

Doc83.

If you look at a chart going back to 2014 then you could easily draw support and resistance lines, with support between 2 to 3p. It has hit that support 8 or 9 times in that period.

If you use say a two year chart, then for most of February this year there was clear support at the 3p level. We look as though we have just bounced off that now, with a test spike down to 3p, and now finishing above that, which may well be a buy signal. Do your own research of course. Often before a move up happens there is a test down to a previous support level.

Doc83 - this link is the one I use to look at charts. I select both barcharts and candlesticks ;

https://www.barchart.com/stocks/quotes/MATD.LN/interactive-chart

Doc83 - I don't know how many people on here keep an eye on charts, but if you do this then you realise that we are simply currently sitting within an average trading range. As far as I'm concerned, nothing has changed since the special purpose designation was given by central government in early July. MB stated that July was lost due to the Mongolians going on holiday for the whole month, so it's now only 7 weeks or so that MATD have had to sort out the local bureaucratic formalities. We already know that agreements have been reached for the local herds people, so progress has been made in that respect. An RNS may drop at anytime, but I have my doubts that if it's favourable that the share price will instantly rerate to double digits and stay there. I think it will simply be an invitation for more wild price action movement in both directions.

So 1.6% down with a grand total of less than £4,000 worth of activity going on.... Welcome to the price action of MATD which is dictated by traders who are currently executing out their accumulation phase.

Take a look at a long term bar or candlestick chart, and you will see that we are firmly within a trading range of between 2.5/ 3p to 10p. Any favourable news will simply allow the traders ( including the MMs ) to offload the shares that they have accumulated at these prices on the next spike at anything between 5p to 10p, as has happened numerous times in the last 8 years or so. I intend to sell off nearly half my holding on the next spike, and then keep the rest for a LTH position, with maybe the possibility of coming back in when the price falls back yet again to the previous well established support levels. If there is a significant rerate which actually sticks, then at least I will still benefit - but it's far more likely that the same patterns of the last 8 years or so will keep repeating.

Doc - it's true enough that the delays have stunted the share price, though crazy variations in the share price on an intra day basis, such as suddenly down 7% with no news and very thin trading volumes are down to something else.

I'm allocating about one third of my holding to riding the spikes when they happen. The next one will come if there is some positive news about the LP bureaucratic formalities. I don't doubt that there will be positive news, as the local governance cannot legally defy the central government. Don't forget though that when the special purpose designation was granted -and before the other local level delays became apparent - the price still went up and down in a day or two like a rollercoaster. Anybody expecting a straight line up rerate is going get a nasty surprise I suspect....

'Keep spending all my life living in a market maker's paradise....'

Currently very low, insignificant volumes, yet sharply marked down around 7% the other day....That's not the market having its say on things when practically no activity is going on.

Where is this MB interview then ? I've looked all over the Mongolian Bloomberg website, and I can't find it.

Landicaamans -thanks for that. And I agree completely with what you wrote.

@Badprophet - you blame MATD, but actually you should be pointing the finger at yourself for not understanding how the market works. Sounds to me that you fell for a classic FOMO spike - bought at the top of the spike and then got shaken out when the MMs dropped it back to the 2p to 3p support levels. You have been spitting venom at MATD and the LTHs ever since - but you need to blame yourself. Living in a world of schadenfreude hoping that MATD go bust or whatever is not a great way to turn a negative into a positive.