Next year will be a hard year for Olam.
They will want to maintain EPS but using negative goodwill to boost profit is not viable anymore.
However, all their current investments will not see much profit next year.
E&Y will probably have to do a more detailed audit on Olam especially those subsidiaries that are accused by MW.
Some of the bonds are maturing next year and if Olam needs to renew them, it is going to be at an even higher interest rate.
Pending lawsuit with MW will also continue to depress the stock price.
And.. answering questions during AGM.
MW really has vital knowledge.
This being a value forum, I think most of the forummers here would have avoided Olam. Its cumulative negative cashflow since 2008 would have turned off most value investors. It is more of a growth trap than value trap. Growth-oriented investors will be attracted to Olam because of its rising profits and revenue over the years. Growth investors will be more willing to tolerate negative operating cashflow initially because of enormous upfront capital expenditure required to pursue growth in the long-term. But even then, Olam needs to bear in mind that investors will start to lose patience if operating cashflow continue to remain negative over a multi-year period and the company keep asking for more money from shareholders and bondholders.
Does Noble Group also have large -ve FCF for many years? This company is a 10 bagger.
Olam call for halt again.
It is probably pending for following-up report after the initial 45 pages report.
Let's see any new update from Olam
(02-12-2012, 10:44 PM)hyom Wrote: [ -> ]This being a value forum, I think most of the forummers here would have avoided Olam. Its cumulative negative cashflow since 2008 would have turned off most value investors. It is more of a growth trap than value trap. Growth-oriented investors will be attracted to Olam because of its rising profits and revenue over the years. Growth investors will be more willing to tolerate negative operating cashflow initially because of enormous upfront capital expenditure required to pursue growth in the long-term. But even then, Olam needs to bear in mind that investors will start to lose patience if operating cashflow continue to remain negative over a multi-year period and the company keep asking for more money from shareholders and bondholders.
Very well put.
Maybe some of us like to just put a little of our money in this kind of counters. No? In anything, so as long as you know or are sure what you are doing, it is alright for me. No? Maybe after knowing so much highlights of OLAM, i may want to short it like "Muddy Water". How?
(03-12-2012, 10:04 AM)Temperament Wrote: [ -> ] (02-12-2012, 10:44 PM)hyom Wrote: [ -> ]This being a value forum, I think most of the forummers here would have avoided Olam. Its cumulative negative cashflow since 2008 would have turned off most value investors. It is more of a growth trap than value trap. Growth-oriented investors will be attracted to Olam because of its rising profits and revenue over the years. Growth investors will be more willing to tolerate negative operating cashflow initially because of enormous upfront capital expenditure required to pursue growth in the long-term. But even then, Olam needs to bear in mind that investors will start to lose patience if operating cashflow continue to remain negative over a multi-year period and the company keep asking for more money from shareholders and bondholders.
Very well put.
Maybe some of us like to just put a little of our money in this kind of counters. No? In anything, so as long as you know or are sure what you are doing, it is alright for me. No? Maybe after knowing so much highlights of OLAM, i may want to short it like "Muddy Water". How?
Before you proceed, let me highlight the following which you may already know
"The potential loss on a short sale is theoretically unlimited while potential gain is limited"
Take care and good luck
(03-12-2012, 10:22 AM)CityFarmer Wrote: [ -> ] (03-12-2012, 10:04 AM)Temperament Wrote: [ -> ] (02-12-2012, 10:44 PM)hyom Wrote: [ -> ]This being a value forum, I think most of the forummers here would have avoided Olam. Its cumulative negative cashflow since 2008 would have turned off most value investors. It is more of a growth trap than value trap. Growth-oriented investors will be attracted to Olam because of its rising profits and revenue over the years. Growth investors will be more willing to tolerate negative operating cashflow initially because of enormous upfront capital expenditure required to pursue growth in the long-term. But even then, Olam needs to bear in mind that investors will start to lose patience if operating cashflow continue to remain negative over a multi-year period and the company keep asking for more money from shareholders and bondholders.
Very well put.
Maybe some of us like to just put a little of our money in this kind of counters. No? In anything, so as long as you know or are sure what you are doing, it is alright for me. No? Maybe after knowing so much highlights of OLAM, i may want to short it like "Muddy Water". How?
Before you proceed, let me highlight the following which you may already know
"The potential loss on a short sale is theoretically unlimited while potential gain is limited"
Take care and good luck
Ha! Ha!
You are right! My PSY make-up does not encourages me to trade aggressively. i always lose money one. i just want to highlight anyone can make or lose money in the market in doing the same thing (short) or different thing (long).
Shalom.
(03-12-2012, 09:39 AM)CityFarmer Wrote: [ -> ]Olam call for halt again.
It is probably pending for following-up report after the initial 45 pages report.
Let's see any new update from Olam
I missed the detail in the halting announcement. It stated
"Olam is expecting to announce an initiative led by the Company involving its shareholders"
Temasek starts its move ... ?
Shortish beware...
(03-12-2012, 12:19 PM)CityFarmer Wrote: [ -> ] (03-12-2012, 09:39 AM)CityFarmer Wrote: [ -> ]Olam call for halt again.
It is probably pending for following-up report after the initial 45 pages report.
Let's see any new update from Olam
I missed the detail in the halting announcement. It stated
"Olam is expecting to announce an initiative led by the Company involving its shareholders"
Temasek starts its move ... ?
Shortish beware...
Right issue?
If they want to shore up the balance sheet, they better do it now than later.
Or maybe some partial conditional offer by Temasek or whowever.