Olam did the right thing
Olam is perhaps the first locally listed company that stood up to defend its position in the face of an attack to run down the value of the stock. This has saved many investors from having the value of their investments wiped out over night. Olam’s price is holding steady at 1.55. It could be seeing $1.20 or a run with its value crashing if Olam did not stand up to fight. The act itself is an assurance and affirmation that the management is confident of what they are doing and no hanky panky operations is going on.
And also must thank Temasek for speaking up to in support of Olam. Otherwise, its investment in Olam could also be sold for a song and another big write off. The position of Temasek is very important to hold back local investors from shorting the counter to kill off Olam.
The battle is still not over yet. The selling is still going on. No one really knows who or how many funds are behind the sell down of Olam. It can’t be just computer trading that is putting the pressure on the stock. The final picture is still unclear and this could be a temporary hold fire stage. The collaborators could come out selling again when the coast is clear. They have not show hand yet.