The 3 major commodity traders have grabbed our attention recently.
- Sept: Wilmar Intl gains momentum, showed signs that it might be ready to break its stagnant trend ($3.08-$3.25).
- Nov: Noble Group Vice-Chairman Banga sold off 225m shares, causing the share price to fall 8.2 percent ($1.07).
- Nov: Olam Intl share price falls by approx 10% in a day after accusations by Muddy Waters, questioning their accounting practices.
OLAM Intl
Muddy Waters:
- Unable to reconcile Olam’s capex with announced projects
- Olam has been very active in the public market
- $4.125b outstanding debt
Some facts:
- Olam is the most borrowed stock among Singapore’s top 30 companies, suggesting heavy demand from short sellers
- Nearly 80 percent of Olam’s shares that can be borrowed are out on loan
-credit: http://business.asiaone.com/A1Business/News/Story/A1Story20121121-384781.html
Here’s a quick estimate of where the share price/support/resistance would be headed. We expect the downward trend to continue below the 1.60 resistance level, finding support at 1.300-1.400, where we believe that there would be a rebound before diving downwards again.
No matter, OLAM (O32.SI) is one to watch.
-EquityWatch | Buy SILVER BULLION here at EW Silver
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