Muddy Waters releases report on Temasek's Olam - shares plunge 6%!

[Merl Haggard]

Plunge? Nonsense! It... it's just fluctuating!

You ain't seen nothing yet.

By 11 pm tonight we'll see how much more it'll come down tomorrow.

 

[Merl Haggard]

Temasick spokesperson: olam is a long term strategic investment. We are not concerned with short term share price fluctuations and irrelevant foreign stock commentators. Neither does temasick usually comment on any specific investment. As this is a long term holding, the investment will remain on our portfolio at book value for the long run.

Merrill Lynch was also their long term investment, but they sold out at the low of $3.20 after it was merged with Bank of America.

Today BAC is passing near $10.

 

[Boliao]

This will be interesting. My bet is the Olam will emerge the winner and Muddy Waters and shorters will burn.With Ernest and Young backing Olam and Temasek's deep pockets, prepare for a big legal battle and Temasek propping up the share value.

Good luck to those who side with Muddy Waters. Muddy Waters became famous for shorting Sino-Forest but eventually, the report was found to be inaccurate and unfounded. Too bad for Sino-Forest as they lack the financial strength to fight back. This time round, I believe they picked the wrong company to short.

 

[watchman8]

You ain't seen nothing yet.

By 11 pm tonight we'll see how much more it'll come down tomorrow.

He caught the new bug of using alternative words:p Ponding, refuse to work etc.

 

[Fishypie]

What to do? This Ah Neh is a very close friend of the jinx whore.

Why these Ah Neh Investment Gurus all looked alike ?..:*:

 

[Bigfuck]

Temasick spokesperson: olam is a long term strategic investment. We are not concerned with short term share price fluctuations and irrelevant foreign stock commentators. Neither does temasick usually comment on any specific investment. As this is a long term holding, the investment will remain on our portfolio at book value for the long run.

In the long run we are all dead and in the long run the company will be gone. It can be invested into hell in the long run I guess.　Going concern in the next world.

 

[halsey02]

Why these Ah Neh Investment Gurus all looked alike ?..:*:

They come from the same "d$#$@^%$g" heap maybe? ha ha ha ha

 

[ray_of_hope]

This will be interesting. My bet is the Olam will emerge the winner and Muddy Waters and shorters will burn.With Ernest and Young backing Olam and Temasek's deep pockets, prepare for a big legal battle and Temasek propping up the share value.

Good luck to those who side with Muddy Waters. Muddy Waters became famous for shorting Sino-Forest but eventually, the report was found to be inaccurate and unfounded. Too bad for Sino-Forest as they lack the financial strength to fight back. This time round, I believe they picked the wrong company to short.

So, perhaps this is an equivalent - on a smaller scale - of the Asian financial crisis when the attempt by speculators to attack the HK dollar prompted the HK govt to come out to declare its determination to defend the HK dollar and its peg to the US$.

 

[Bigfuck]

Good luck to those who side with Muddy Waters. Muddy Waters became famous for shorting Sino-Forest but eventually, the report was found to be inaccurate and unfounded. Too bad for Sino-Forest as they lack the financial strength to fight back. This time round, I believe they picked the wrong company to short.

Don't count to much on it.　State sponsored international financial manipulation wars that are obvious will get it. EY also needs to be careful in how far it sticks its neck out. Nice to watch. There is more than just MW here.　

 

[watchman8]

This will be interesting. My bet is the Olam will emerge the winner and Muddy Waters and shorters will burn.With Ernest and Young backing Olam and Temasek's deep pockets, prepare for a big legal battle and Temasek propping up the share value.

Good luck to those who side with Muddy Waters. Muddy Waters became famous for shorting Sino-Forest but eventually, the report was found to be inaccurate and unfounded. Too bad for Sino-Forest as they lack the financial strength to fight back. This time round, I believe they picked the wrong company to short.

If olam has strong balance sheet, low debt etc. then I think it will be worthwhile to defend. Now they probably trying to offload slowly. Don't be surprise to see private bankers flogging equity linked notes on olam in coming weeks as temasick and other big investors use derivatives to reduce exposure.

 

[Merl Haggard]

This will be interesting. My bet is the Olam will emerge the winner and Muddy Waters and shorters will burn.With Ernest and Young backing Olam and Temasek's deep pockets, prepare for a big legal battle and Temasek propping up the share value.

Good luck to those who side with Muddy Waters. Muddy Waters became famous for shorting Sino-Forest but eventually, the report was found to be inaccurate and unfounded. Too bad for Sino-Forest as they lack the financial strength to fight back. This time round, I believe they picked the wrong company to short.

If olam has strong balance sheet, low debt etc. then I think it will be worthwhile to defend. Now they probably trying to offload slowly. Don't be surprise to see private bankers flogging equity linked notes on olam in coming weeks as temasick and other big investors use derivatives to reduce exposure.

Olam's outstanding debts amount to more than $8b and with this ongoing saga, am sure creditors are geting very nervous.

When creditors start to pull the rug, let's see if Temasek come out to defend further.

 

[mojito]

1. With Ernest and Young backing Olam
2. and Temasek's deep pockets, prepare for a big legal battle and Temasek propping up the share value.
3. Muddy Waters became famous for shorting Sino-Forest but eventually, the report was found to be inaccurate and unfounded.

Obviously you are trying too hard. You have made 3 claims which are untrue as of this time of posting. Hold on to your pants, buddy.

 

[Zatoichi]

How will temasick sell 16% equity?

Maybe Temasek has no intention to sell, but intends to BUY instead?
And maybe even buy a majority stake, just 35% more, to become the only controlling shareholder?

Or even the entire 55% of free-float shares?
http://olamonline.com/investor-relations/shareholding-structure
http://www.reuters.com/finance/stocks/overview?symbol=OLAM.SI

At the moment, there are 2,442,409,869 issued shares.
55% x 2,442,409,869 = 1,343,325,428 shares

So if the stock price falls to, say, S$0.10 or S$0.20 sometime next year, that would cost Temasek less than S$300 million to buy a majority controlling interest in Olam for such a relatively small amount of money that they can well afford to lose, in return for the much more valuable asset of FOOD.

Remember, Temasek likes to plan for the long term, including the possible scenario of a worldwide shortage of food due to whatever reasons.

So even if Olam never makes a profit again (in monetary terms), Temasek (and of course, Singaporeans) would have profited in terms of food, or at least survived the ordeal of a food shortage; by then, even losing billions of S$ or US$ would seem like money well-spent.

Come to think of it, ironically, Muddy Waters Research and their team of relatively young people, led by some guy who's only 36 (implying possible inexperience) and a white U.S. American (implying even more inexperience and lack of understanding when it comes to East Asian culture; or at least, I think it's safe to say that he can't possibly be more experienced and understanding than the average East Asian about East Asian culture), might be doing Temasek (and even Singaporeans) a favour by giving it the opportunity to buy, at a cheap price, food assets that Singapore obviously has a severe shortage of to feed a few million people on this tiny island.

I'm not pro-Temasek or pro-PAP or pro-government, but that's just my own conspiracy theory about Temasek's true intentions.

Merrill Lynch was also their long term investment, but they sold out at the low of $3.20 after it was merged with Bank of America.

And that was quite possibly a political favour that Temasek did for the US government under the guise of a "financial investment".

Financial power, in the form of monetary wealth, is certainly a priority for Temasek and the PAP and their cronies; but MOST important of all is REAL power, meaning MILITARY power and POLITICAL power, which Temasek and the PAP are smart enough to understand that such power, in the modern world, comes mostly from the USA and its allies.

Otherwise, how else can we explain why the US central bank dares to print so much money to repay its government's debts in a currency that's losing value year after year, which is tantamount to a default?

And more importantly, why are so many countries around the world still willing to accept the US Dollar as the reserve currency (which is why they are still willing to accept payments in USDs)?

Monetary wealth is obviously not the be-all and end-all of the upper classes around the world, and I believe Temasek and the PAP should be smart enough to know that and act accordingly.

Ultimately, what the upper classes need, and have always needed, are SLAVES, regardless of whether their slaves are willing or unwilling (or even slaves who THINK they are NOT slaves), as long as they do their jobs and serve their masters satisfactorily. And in order to enslave people, the upper classes need power, both financial (to bribe) and military/political (to bully); essentially, it's really as simple as that.

But ironically, even the upper classes are also "slaves" in a certain sense, i.e. they depend on their own slaves to maintain their upper-class status; because without slaves, the upper class would lose their status and the power/possessions/pleasure that comes with it, which they are addicted to and, therefore, slaves of; just like how a drug addict is addicted to drugs and a slave of drugs.

So... what shall we do? haha

 

[watchman8]

Olam's outstanding debts amount to more than $8b and with this ongoing saga, am sure creditors are geting very nervous.

When creditors start to pull the rug, let's see if Temasek come out to defend further.

Yeap. First to go is line of credit and short term debts. See how olam continue business. Thereafter banks will review all the long term debt covenants. Sure can find some excuse to pull the rug.

Temasick will be silly to defend ... but hard to say, they are that stupid!

 

[GOONDUSAMI]

Ho Ching is stupid. So is the 60.1% sinkies. Stupidity is infinite, just like the Universe.

 

[mojito]

Yeap. First to go is line of credit and short term debts. See how olam continue business. Thereafter banks will review all the long term debt covenants. Sure can find some excuse to pull the rug.

Temasick will be silly to defend ... but hard to say, they are that stupid!

A legal battle is unlikely. More likely is Olam seeking an equity commitment from Temasek using the following time tested extortion - "Think of all the lucrative jobs sinkies will lose if Olam folds!" Rights offering will follow if they survive that long. I'm still less than halfway through the report... and i am convinced that management has not been honest.

 

[Merl Haggard]

Ho Ching is stupid. So is the 60.1% sinkies. Stupidity is infinite, just like the Universe.

Horseh liao!

Olam plunged 5.75% in Frankfurt and 6.5% in NY.

Tomorrow in S'pore we'll see 1.50 and below.

 

[jixiaolan]

City Spring is a joke. I cut loss immediately after it was reported that the company paid out the bulk of the profit as bonus to the management team.

What to do? This Ah Neh is a very close friend of the jinx whore.

He was the one who helped the whore launched City Spring which sent many to Horlan.

City Spring IPO was priced at $1 in 2009 and today it's 44c.

 

[wathecrap]

What to do? This Ah Neh is a very close friend of the jinx whore.

He was the one who helped the whore launched City Spring which sent many to Horlan.

City Spring IPO was priced at $1 in 2009 and today it's 44c.

Izzat so? No wonder the shares died.

 

[Warlock]

Any company run by ah neh is bad enough. Significant business in Nigeria some more. Temasick really got no eyes and brains. That's how sinkieland national assets got plundered.

It could be staged. All losses are actually in someone's pocket instead. Lots of scams were like that. He would tell you he had lost all your money in the 'investment'.