Olam Intl   

OLAM_OLAM

Question as per below to everyone for a healthy discussion:

From what I've just read...  Every 1000 shares owned will entitle the shareholder to subscribe to 313 Olam bonds with face value of US$1 each. If taken up, the 313 bonds will also come with 162 warrants, with each warrant carrying the right to subscribe for one new Olam share at an exercise price of US$1.291

How attractive will this rights issue be to shareholders and why? Is it viewed as a generous offer? 

 

Thank you for taking the time to answer my question.

Obfuscate      ( Date: 18-Dec-2012 15:36) Posted: I dont work for  a hedge fund  so I dont know the answer but the historical data has demonstrated that it can be done because the volume is there. counter      ( Date: 18-Dec-2012 15:15) Posted: That is not my question. My question is, 'How likely is it that hedge funds were shorting at around $2 for over 20+ sessions and yet the price stayed around $2?

 

I dont work for  a hedge fund  so I dont know the answer but the historical data has demonstrated that it can be done because the volume is there.

counter      ( Date: 18-Dec-2012 15:15) Posted: That is not my question. My question is, 'How likely is it that hedge funds were shorting at around $2 for over 20+ sessions and yet the price stayed around $2? Obfuscate      ( Date: 18-Dec-2012 15:10) Posted: Again why not? In last 30+ sessions avg volume 30m, still price can slide from $2 to below $1.40

 

You have learnt well...now you are ready to go down mountain.

Richardus      ( Date: 18-Dec-2012 15:18) Posted: Yes! remember everyone, Peter_Pan uses in his own words " for advanced TA, (he) uses Oppa Gangnam style" .  Peter_Pan      ( Date: 18-Dec-2012 14:56) Posted: Remember......

 

Yes! remember everyone, Peter_Pan uses in his own words " for advanced TA, (he) uses Oppa Gangnam style" . 

Peter_Pan      ( Date: 18-Dec-2012 14:56) Posted: Remember....... Peter_Pan      ( Date: 18-Dec-2012 13:56) Posted: Remember to lock in your profits

 

That is not my question. My question is, 'How likely is it that hedge funds were shorting at around $2 for over 20+ sessions and yet the price stayed around $2?

Obfuscate      ( Date: 18-Dec-2012 15:10) Posted: Again why not? In last 30+ sessions avg volume 30m, still price can slide from $2 to below $1.40. counter      ( Date: 18-Dec-2012 15:02) Posted: I wasn't making statement. It was a question. I didn't know that you would be offended by a simple question. My apology. Btw, how likely is it that hedge funds were shorting at around $2 for over 20+ sessions and yet the price stayed around $2? This is a question, not a statement

 

Again why not? In last 30+ sessions avg volume 30m, still price can slide from $2 to below $1.40.

counter      ( Date: 18-Dec-2012 15:02) Posted: I wasn't making statement. It was a question. I didn't know that you would be offended by a simple question. My apology. Btw, how likely is it that hedge funds were shorting at around $2 for over 20+ sessions and yet the price stayed around $2? This is a question, not a statement. Obfuscate      ( Date: 18-Dec-2012 14:48) Posted: http://finance.yahoo.com/echarts?s=O32.SI+Interactive#symbol=o32.si range=1y compare= indicator=volume charttype=area crosshair=on ohlcvalues=0 logscale=off source=undefined Why is it NOT possible? Mid Sep-Mid Oct, avg daily vol 11m+ shares, avg price 2.02 in 20+ sessions. Price is still below $1.50 at this moment. Can you do some BASIC research before making baseless statements

 

I wasn't making statement. It was a question. I didn't know that you would be offended by a simple question. My apology.

Btw, how likely is it that hedge funds were shorting at around $2 for over 20+ sessions and yet the price stayed around $2? This is a question, not a statement.

Obfuscate      ( Date: 18-Dec-2012 14:48) Posted: http://finance.yahoo.com/echarts?s=O32.SI+Interactive#symbol=o32.si range=1y compare= indicator=volume charttype=area crosshair=on ohlcvalues=0 logscale=off source=undefined Why is it NOT possible? Mid Sep-Mid Oct, avg daily vol 11m+ shares, avg price 2.02 in 20+ sessions. Price is still below $1.50 at this moment. Can you do some BASIC research before making baseless statements? counter      ( Date: 18-Dec-2012 13:42) Posted: How is it possible for hedge funds to build up a huge short position all at the same price ($2) and cover it all at the same price ($1.50)

 

The buying today were from short covering , back to square one soon.

 

Remember.......

Peter_Pan      ( Date: 18-Dec-2012 13:56) Posted: Remember to lock in your profits. Peter_Pan      ( Date: 18-Dec-2012 12:42) Posted: Downtrend to continue after locking in profits.

 

http://finance.yahoo.com/echarts?s=O32.SI+Interactive#symbol=o32.si range=1y compare= indicator=volume charttype=area crosshair=on ohlcvalues=0 logscale=off source=undefined

Why is it NOT possible? Mid Sep-Mid Oct, avg daily vol 11m+ shares, avg price 2.02 in 20+ sessions.

Price is still below $1.50 at this moment.

Can you do some BASIC research before making baseless statements?

counter      ( Date: 18-Dec-2012 13:42) Posted: How is it possible for hedge funds to build up a huge short position all at the same price ($2) and cover it all at the same price ($1.50)? Obfuscate      ( Date: 18-Dec-2012 13:10) Posted: If they, the hedge funds, shorted at $2 and cover back at $1.50 it still is a very profitable trade for two months work. Lets see how long it takes Olam to get back to $2 from here

 

I am guessing the short-covering has not commence yet. Maybe the volume is due to new funds building fresh positions since there's zero shares for lending from CDP.

News:



http://www.theedgesingapore.com/the-daily-edge/business/42017-olam-54-management-holding-investor-roadshow.html

 

For more advance TA, I use Oppa Gangnam Style.

Richardus      ( Date: 18-Dec-2012 13:57) Posted: Thanks for the explanation, skk888 regarding your trade decision. As for, Peter_Pan- grow up buddy!  Peter_Pan      ( Date: 18-Dec-2012 13:10) Posted: I use Gangnam Style

 

Thanks for the explanation, skk888 regarding your trade decision.

As for, Peter_Pan- grow up buddy! 

Peter_Pan      ( Date: 18-Dec-2012 13:10) Posted: I use Gangnam Style. skk888      ( Date: 18-Dec-2012 13:07) Posted: I was guessing Peter Pan uses TA since he kept mentioning about dead-cat-bounce. I employ both, but my consideration for the entry was more based fundamentals - its Price Book ratio which was very close to 1, low PE ratio, improving economic conditions, cum rights period, temasek's backing, and my assumption that the accounts were fully compliant to standards. Well if you look at recent quater's results which Olam included the biological gains for the first time, if you exclude that, they only made a slight loss, which I feel will not have any material effect on its book value

 

Remember to lock in your profits.

Peter_Pan      ( Date: 18-Dec-2012 12:42) Posted: Downtrend to continue after locking in profits.

 

How is it possible for hedge funds to build up a huge short position all at the same price ($2) and cover it all at the same price ($1.50)?

Obfuscate      ( Date: 18-Dec-2012 13:10) Posted: If they, the hedge funds, shorted at $2 and cover back at $1.50 it still is a very profitable trade for two months work. Lets see how long it takes Olam to get back to $2 from here. Putumayam      ( Date: 18-Dec-2012 11:27) Posted: Greed is a weakness of most shortists. All being baited in with the hopes of < $1 in very short term. Loks like many shortists gona eat maggi mee  bread over xmas already.. =D

 

If they, the hedge funds, shorted at $2 and cover back at $1.50 it still is a very profitable trade for two months work. Lets see how long it takes Olam to get back to $2 from here.

Putumayam      ( Date: 18-Dec-2012 11:27) Posted: Greed is a weakness of most shortists. All being baited in with the hopes of < $1 in very short term. Loks like many shortists gona eat maggi mee  bread over xmas already.. =D tonylim      ( Date: 18-Dec-2012 11:21) Posted: It is going a be big problem for shortists.. now it has gone up as high as 1.4

 

I use Gangnam Style.

skk888      ( Date: 18-Dec-2012 13:07) Posted: I was guessing Peter Pan uses TA since he kept mentioning about dead-cat-bounce. I employ both, but my consideration for the entry was more based fundamentals - its Price Book ratio which was very close to 1, low PE ratio, improving economic conditions, cum rights period, temasek's backing, and my assumption that the accounts were fully compliant to standards. Well if you look at recent quater's results which Olam included the biological gains for the first time, if you exclude that, they only made a slight loss, which I feel will not have any material effect on its book value. trade1969      ( Date: 18-Dec-2012 12:56) Posted: Thought Techincal analysis wouldn't work in this situation? 'Crystal ball' work, guess skk888's crystal ball has let him earned handful of profit when he buoght in at $1.39. Peter-Pan 'Crystal ball' of $1.255 doesn't since to be working well?

 

I was guessing Peter Pan uses TA since he kept mentioning about dead-cat-bounce.

I employ both, but my consideration for the entry was more based fundamentals - its Price Book ratio which was very close to 1, low PE ratio, improving economic conditions, cum rights period, temasek's backing, and my assumption that the accounts were fully compliant to standards. Well if you look at recent quater's results which Olam included the biological gains for the first time, if you exclude that, they only made a slight loss, which I feel will not have any material effect on its book value.

trade1969      ( Date: 18-Dec-2012 12:56) Posted: Thought Techincal analysis wouldn't work in this situation? 'Crystal ball' work, guess skk888's crystal ball has let him earned handful of profit when he buoght in at $1.39. Peter-Pan 'Crystal ball' of $1.255 doesn't since to be working well?  skk888      ( Date: 18-Dec-2012 10:45) Posted: If your style is technical analysis, you should know that a bullish hammer was formed on the 14 Dec

 

BTW, ProTrader is for cash market and it does not come with the trailing stop function. CFDTrader2 comes with with the trailing stop, which you could specify the percentage to trigger the buy/sell. Yeah, either you pay for subscription for ProTrader if you do not pay enough commission to your remisier. For CFDTrader2, its FOC. I think among the platforms available locally, CFDTrader2 is quite useful. ProTrader is less useful in my opinion. 

Bopanha      ( Date: 18-Dec-2012 11:22) Posted: Sg market has no advanced platform for trading stop losses, or trailing stops.   These platforms for " high fly trading" require very skilled IT maintenance staffs and good system software programs that Singapore brokers either lacked or refused to implement for reasons of their own agendas.  Only poems's " protrader" has an useful substitute function that a trader can use for something like stop loss and " self implemented trailing stops" . However, not everyone gets to be able to use it unless you have high trading volumes or pay for subscription for the " pro-trader" facility.  I think the lack of advanced platforms in Singapore is due to the brokerage firms' could not be bothered attitude towards business and clients' interests..   We don't have the right culture currently. Lol.