Olam -- sell

Looking at the chart, who can say for certain that Olam is a screaming buy? if I may venture a guess, this stock is going nowhere for the next couple of months (assuming no major development on the MW front). Investor confidence has been damaged, Olam may slow down its M&A, some big insti shareholders may pare down their exposure, etc. I think I will give this a miss, especially when I see so many other value stocks with fantastic Free Cash Flow around.  

Looks like Olam is going to achieve the upper hand against Muddy Waters. In the meantime, a one-day trading halt like this will disrupt short covering and make it more expensive for shortists.

Olam requests a one-day trading halt, ending prior to market commencement on Tuesday, 4 December 2012, as Olam is expecting to announce an initiative led by the Company involving its shareholders. Olam expects the announcement to be made before market commencement on Tuesday, 4 December 2012.

Hooray, tmr Olam zhong ... good deal!! OLAM INTERNATIONAL ANNOUNCES PROPOSED US$750 MILLION RENOUNCEABLE UNDERWRITTEN BOND-CUM-WARRANT RIGHTS ISSUE This Transaction has the full backing and support of the Company’s key relationship banks including Credit Suisse, DBS, HSBC and  J.P. Morgan who will underwrite this Transaction in full. Further, Temasek has undertaken to take up their rights entitlement and  have also committed to subscribe for all Bonds and Warrants that are not subscribed for under the Transaction,underlining Temasek’s  support for Olam and the Company’s announced strategic plan. Olam’s Group Managing Director and CEO, Sunny Verghese said: “...... With this strong vote of confidence and support, we now move forward with a significantly enhanced balance sheet position and financial flexibility.” Transaction fully backed by Temasek Temasek first became an investor in the Company in 2003, prior to its listing.  â€œWe have invested in Olam over the years.  We are supportive of its publicly known strategy to take the opportunity, in recent years, to add on more upstream and midstream capabilities and capacities.  While no business is without risks, we remain comfortable with Olam’s credit position and longer term prospects, and are pleased to have another opportunity to invest in the company, alongside other shareholders,” said Temasek’s Senior Managing Director, Investments, Mr David Heng.

Remember ABC Learning centre, Citibank, Barclays, UBS.....? Under written does not mean anything. Asking for more money, means that they are tight on cash. 6% ? .... What is the rating? Still bye bye bye.....

Dear MW,  you are in deep waters now. U didn't expect this did you? The undercurrents are very strong. Have you covered your shorts? Sincerely, Clear Waters Revival

Well well, as I predicted. MW is in deep mud now, as the stock has shot up 10 cents ! Now @ 1.68, how can MW not lose his pants?