I have yet to read the full report compiled by Muddy Waters on Olam but I have read the brief introduction of the report. These are the few key points I have garnered from the report and I quoted from the website:
“it is instructive to view Olam through the lens of failed US trader Enron Corp. There are a number of material similarities in the way their businesses developed, and their actions”
“One possible interpretation is that Olam is doing far more greenfield projects than realized, which greatly increases its risk profile. Another possible interpretation is that Olam has problems with internal controls and significant cash leakage. “
“We believe We value Olam on a liquidation ...
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