atans1

Olam: Temasek’s actions key

In Commodities, Temasek on 20/11/2012 at 1:45 pm

Olam fights back.

As Temasek is the second largest shareholder, will be interesting to see what it does. If it doesn’t buy Olam shares, Olam will remain under a lot of pressure. If it does buy, TRE, TOC readers and other cowboys (esp from Facebook) will be mindlessly attacking Temasek, juz because ang moh says Olam shares are a short.

 

 

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  1. I am curious why you think Temasek should take any action given that it is a long term investor. Why should Temasek support any of its investments whenever their shares dip? There are many reasons why that is a bad investment strategy. Just look at what happened to the bank shares during the financial crisis. It is a dangerous game to play to try catching a falling knief, espeically with YOUR retirement funds.

    • It’s second largest shareholder. Not a tiny position. So in situations like this, it got to do its homework. And if after doing homework, it thinks allegations are false, double down as long term investor. If allegations right, it will Ho Ho Jinx again.

      Actually few yrs back a CLSA analyst questioned Olam’s accounting practices. But when nowhere as other analysts didn’t agree. Investors ignored here. Nothing new under the sun.

      • If the allegation is false, the shares will recover and the temporary dip should not be a concern for a long term investor. If the allegation is true, get out before it goes to zero.

        Doubling-down is a strategy taken by risk takers (e.g. gamblers), not conservative investors (e.g. pension funds.)

        If you look at any 52-week chart, the share price can vary widely. Should an investor double down when it hits the 52-week low? Temasek has as much information as other investors. Unless it has inside information as a second largest holder, there is no justification for it to double down.

  2. I hope our supposed to be First World Financial Experts have the right vision to foresee or visualize what is the depth of danger in this supposed to be long term investment. It is of no use supporting if it is a failed investment, option is to cut lost and just leave, or which in the end, became zero.

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