Olam -- sell

Yes, Muddy Water is known for taking big short position on companies that they critise and profit from the prince plunge. While their motive is debatable, the key question here is whether their points are valid. If you follow Muddy Water, you will realise that they are spot on. They do their HOMEWORK, and strike at the right time.

NOT totally true that Muddy is spot on lah. Pse read on...
"....note that Muddy Waters has had a mixed track record. While its call on Sino-Forest was correct, its recent calls on New Oriental Education & Technology Group and Focus Media have been less accurate so far..."  In fact, Focus Media had run up 26% after being picked by MW and is a now target for takeover by some funds.
Olam's call for a trading halt, followed by their various responses were correct and must be done to protect their share/bond holders. It is to prevent a collapse of the market price, thereby benefitting those unscrupulous shorters and fulfilling their aims!!  Now, their short positions may not have the opportunity to be covered and hope they ended up paying the loses. Kudos to the Olam management! 
Finally, I hope Olam would sue MW for stock manipulation and influences. Their actions are all pre-planned, ie. big amt of shortings prior to 15 Nov and saying such things on 19 Nov at an inappropriate event. zthink they are desperate too.
Good luck to Olam shareholders. We did not do anything wrong, but still got hit by these unscrupulous traders.  
 

Singapore, November 21, 2012 – Olam International Limited has today initiated legal action in the High Court of Singapore against both Muddy Waters, LLC and Carson Block for the statements made at the Sohn London Investment Conference in London on November 19,2012.

I think Olam will apply the brakes on its strong expansion plans. surely it can see now that it is an easy target of criticism when it stays at such a high leverage position. Its investors will clamour for a reduced leverage.

Sue their pants off, those fraudsters!

It's not just the fact that he had taken a big short position on Olam and stood to profit by talking down the stock. It's also the unsavoury way he wormed his way into Olam's meeting. I quote a media report: 

“We’ve been told several hedge funds had gone and talked to our key investors about why they feel uncomfortable about the company,” Verghese said Nov. 20 on the conference call. Block â€œis not acting alone” and the company believes he visited Olam’s Singapore office on Nov. 1 in disguise, Verghese said. â€œWe had to extract his credentials after much frustration. He gave us a false name.”