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(Yesterday, 05:02 AM)Shrivathsa Wrote: The interesting thing is the remaining assets other than ofi are worth 2.9 Billion. If Olam can sell those at that value, it will likely be a huge value unlock.
The one good thing though is that for a change they are very aggressively doing SBB, https://links.sgx.com/1.0.0/corporate-an...8ac3792d0e buying back close to 18.5 million shares of the 189 million mandate.
Will probably have to hold for five years plus to see the value being unlocked as all this was being talked about pre-2020 as well and time and from the 1.92 share price then in March 2022 to now, it has been a long wait for shareholders.
Hi Shrivathsa,
Olam is like some sort of special situations (in this case, a company undergoing some restructuring) and as you have pointed out, the time period to materialize is uncertain. So as usual where there is uncertainty, it is the intelligent investor to decide whether the premiums are worth it or not.
In general, we overestimate what happens in the short run but underestimate what can be achieved in the long run. For anyone who can reasonably understand the entire Olam's business model and balance sheet, they will have the ability to jump over this "6 feet pole" I suppose.
The great thing I like about such special situations (but just for disclosure, I am not vested in Olam) is that returns if any, are not correlated to the market. IMHO, this is part of the holy grail of diversification that an intelligent investor would hope to achieve for their portfolio allocation.