Tuesday, May 20, 2014


I am actually quite baffled by Olam making an exceptional gain of $271m in Q3FY2014 merely by reclassifying an investment eg Purple Circle from previously being "an investment in an associate company" to being "an available for sale" financial asset. Basically, the asset previously was not marked for market but now is. To me, this is just financial accounting and it does not change a bit on how the company really is.Without this, PATMI is quite mediocre for the quarter.

BTW, I have let go half of my shares at $2.23 and all by warrants.The decision to keep half of my shares still in the company is basically twofold. Olam greatest challenges are execution and credit access. With Temasek now prominently in the picture, access to credit should be less of an issue.What remains is execution. We will see. Also at current market prices, I do not see any good investment to make if I get out completely.Olam's NAV is currently at around $1.64 so the P/B still look reasonable. Of course we must take NAV with a grain of salt and not to trust it completely.

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