Olam International

[a74henry]

I wonder if Muddy Waters shortsold on OLAM and just waiting for OLAM to freefall so that they can profit.

To provide a contrarian view, Orbis Holdings Limited (OHL) has increased its OLAM shareholdings from 7.88% to 8.02%. recently.
(Refer to http://infopub.sgx.com/FileOpen/4Sep2013...eID=255154)

Apparently, there are investors who have done their OLAM due dilligence to go against the herd (similar to the company who decided to buy up China Minzhong).

Based on Olam's latest results, the NAV is $1.51. Trading below its NAV and PE is 10x based on $1.42 (last done price) for an integrated commodities supplier from upstream to downstream. As a comparison, is Wilmar trading below its NAV? No.

I find this a value preposition. Of course, the lower the price the more attractive. As I am not familiar with OLAM management, I would be delighted if fellow investors can share with me more about OLAM management.

Based on the last quarter's operational cashflow and extrapolation, it generates sufficient cashflow to pay for its borrowing interest (assumed at 7%).

My advice to OLAM is to refinance its overdraft and its short term debts into secured loans to match its projects to reduce its debt interest obligations.