Everyone has their say on Olam now. Loudest ones veering towards, “I knew it” and “I told you so”.
But there is a silent majority of “I do not believe it” and “Temasek will not let this happen to us”.
Yes. I agree with silent majority.
Gangnam Style, Asia Style, Singapore Style. They hang the drug traffickers here and I have no comment about the drug lords (sentence changed).
First thought on hearing Olam news, was Muddy Waters have the nerve to infringe on Singapore’s territory. Singapore is not Canada ! They will be squeezed out of their shorts soon.
Olam will not go. This is not China Aviation Oil, the last major public scandal I can recall, not counting the little Jurong Shipyard hushes along the way. The small ones do not get much fanfare but the big index stocks like Olam gets people sitting up.
I have complained about Olam bonds incessantly since the last one I traded a few years back. I have not come even close to buying a single one personally. Just plain do not like the company even though I have great admiration for their DeBeers model, front to back from the fields to customers. The board of directors do not give me comfort.
Why do I feel Olam will be ok?
Just look at the libor scandal onshore which has now spilled on the NDF fixing investigations. Not even a single middle management casualty so far, or there ever shall be. Everyone suspended has been of the lower or middle ranks. Yes. Singapore will have the highest number of traders admonished (can see that headline in the near future) but as far as their heads or bosses are concerned, there will be no trouble.
Thank you, Muddy Waters. I have utmost respect for you since the Sinoforest incident. I really admire the spirit behind your audacity to challenge the status quo. It only serves to strengthen my resolve to remain vigilant because my motto is to never die of ignorance.