Photo: Screenshot via Bloomberg TV
Researcher and short seller Carson Block does not care that his latest short, Singapore-based commodities trading firm Olam International, reported a 19.9% spike in net profits in its latest earnings report.He doesn’t even care that the company, which he says is using the same tricks as Enron, posted a revenue of $4.9 billion, a 9.2% boost.
Block is sticking to his guns. His firm, Muddy Waters, released a 4 page response to Olam’s earnings report detailing the problems it still sees with their accounting.
In a nutshell, according to their response, Olam is dangerously high free cash burn, has taken on too much dangerous debt, has spent too much money on investments and acquisitions, and has an unsustainable interest burden.
Olam announced it would offer $750 million in bonds and $500 million in warrants at the end of last year. Muddy Water or not, the offering was guaranteed to go well. Olam is part owned by Temasek, Singapore’s sovereign wealth fund, and Temasek has no interest in seeing anything happen to Olam.
All that said, the stock is up. Here’s what it’s looked like over the last 5 days. The company released its earnings yesterday.
Photo: Yahoo Finance
Business Insider Emails & Alerts
Site highlights each day to your inbox.