We continue to believe that, in a world where capital is allocated to maximize economic efficiency, Olam’s shares have no value. The Company has simply borrowed too much money, and then invested in projects that will not generate sufficient returns to repay its debt obligations. In this note, we w… more
Muddy Waters retains our original investment thesis and Strong Sell rating on Olam’s shares. Our analysis of Olam’s Q2 2013 results is detailed in our latest report. To download the 4-page report, check the box to agree with the Terms of Service and then click the "Download Report" button.… more
Olam’s surprise announcement of an unusually structured US$750 million debt issuance validates our thesis that Olam is in danger of failing. Only in the case of our November 2010 report on Rino International have we had a faster confirmation of an investment thesis. To download the 2-page repo… more
Olam’s response to our November 27th report is remarkable in that, despite being 45 pages long, it fastidiously avoids addressing the vast majority of our points. The response is essentially a waste of toner, as much of it consists of canned presentation slides and consultant drivel. Where Olam’s re… more
Muddy Waters rates Olam International (SGX:O32; OTC:OLMIY/OLMIF) shares a Strong Sell. In this latest report Muddy Waters highlights how: Olam runs a high risk of failure. Its "asset heavy" strategy appears to be an off-the-rails CapEx and acquisition binge. Management talks about the "gestation"… more
To Olam CEO Sunny Verghese and the Board of Directors: In the two and one-half years Muddy Waters, LLC has been openly criticizing publicly-traded companies, we have not seen a response as defensive as yours - not even from Sino-Forest. On Monday, our Director of Research gave a brief talk on Ol… more