Olam -- sell

Since when is the solution to high leverage...more debt with fx risk? Michael Dee

Olam need to post a detailed timeline of share purchases to lift any cloud of doubt around CEO and Board purchases of shares. Should be very easy to do. Michael Dee

I am not surprised if MW has already covered their short position and now slowly going long, as the price drifts lower, to a point that they will give another report that management has taken their views and making corrective actions to bring the company back to health. Makan both ways...always correct... and easy money.

Olam International’s biggest shareholder will participate in a $1.25 billion sale of bonds and warrants, joining Temask Holdings in backing the offering.
“As the company’s largest shareholder, we fully support its proposed rights issue of bonds and warrants,” Kewalram Singapore Ltd., which owns 20 percent of Olam, said in an e- mailed statement yesterday.

“We believe that it is in the best interest of the company, and is an attractive investment opportunity for all shareholders, as well as being beneficial to the bondholders. We intend to participate in the proposed rights issue.”

The existing strategic shareholders will have no choice but to keep the ship afloat. And hopefully, over time, navigating the ship away from the iceberg. So MW indeed raised the alarm in time to avoid Titanic crashing.

Olam should raise equity, and not debts, and definitely not debts with yields of more than 10%. However, any share or rights placements at this momenet will definitely have to be at a significant discount to the current price, thereby dragging down the price further, and as a result benefiting MW (whether MW is still covering shorts or starting to go long). Guess poor OL is now in a binge.