15-03-2014, 02:36 PM
It may be better to take it private if they dont behave like they are running a public-listed company. Many mid-small companies also behave likewise. So be careful when u put money in these counters.
(15-03-2014, 10:57 AM)kikababoo Wrote: [ -> ]agree with u on the legal definition of insider trading part. i tend to use this term quite widely lol. anyone know if the run up was caused by temasek collecting more shares? anw to check? i thought tem would need to make some filling if it acquire more shares on open-market transactions.
(14-03-2014, 08:31 PM)tanjm Wrote: [ -> ]Olams 6.75% bond ramped up to 1.025 today.
If Temasek ends up with a substantial stake in Olam (and there's no reason to believe most people won't take up its offer), then Olam's effective credit rating has to improve. Currently at 1.025, it has a yield to maturity of 6.24%. Temasek's own bonds are just tens of basis points above USD treasuries.
The gap should close. Even though Olam is a separate entity, it's hard to see how Temasek would not backstop its billion dollar investment. Worth getting some and holding to maturity even if for some strange reason, the yield doesn't go down (price go up) for the temasek backstop. Even at a price of 1.1, the yield is still 4%.
I bought a bunch today as a matter of fact when I saw the news.