Muddy Waters slams 'Enron-like' firm
Block's %%PRO8%%, Muddy Waters, is understood for spotting deceitful accounting practices, primarily at Chinese companies. Late Monday, Muddy Waters issued a scathing report on Olam, stating it "runs a high risk of failure.". Block slapped Olam with a "strong sell" score, noting that his %%PRO8%% believes Olam's "value is less than its debt, and that it is at significant risk of defaulting on its obligations.". In its report, Muddy Waters said Olam's greatest trouble is rooted in its acquisitions, including its acquisitions of Crown Flower Mill and SL Foods about three years back, together with its subsequent accounting practices. Related: How Muddy Waters finds fraud in China. "The vast majority of acquisitions we have researched are of low quality assets that appear to bring little more than cosmetic benefits to Olam," said Muddy Waters in the report.
Keywords:
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Muddy Waters
Overall Sentiment: -0.154698
Relevance: 0.901646
| Sentiment | Quote |
|---|---|
| -0.0841206 | "The vast majority of acquisitions we have researched are of low quality assets that appear to bring little more than cosmetic benefits to Olam," said Muddy Waters ... |
| -0.0704842 | "The vast majority of acquisitions we have researched are of low quality assets that appear to bring little more than cosmetic benefits to Olam," said Muddy Waters in the report. "We believe that Olam's fatal flaw, and one of its best kept secrets, is that its capital expenditure projects seem to be a fiscal black hole." |
| -0.118242 | "Comparisons to Enron are overused, but in the case of Olam, the similarities are really uncanny," wrote Muddy Waters. |
| -0.108929 | Muddy Waters' report, though the company released a statement saying there is "no substance" ... |
| Sentiment Stats: |
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Olam
Overall Sentiment: -0.232579
Relevance: 0.661786
| Sentiment | Quote |
|---|---|
| 0 | "Our accounting practices are fully compliant with international accounting standards, which are independently verified by Ernst |
| 0.137621 | Young and are drawn up in accordance with the provisions of the Companies Act and Singapore Financial Reporting Standards," said Olam. |
| 0 | "Our accounting practices are fully compliant with international accounting standards, which are independently verified by Ernst |
| 0.0390652 | Young and are drawn up in accordance with the provisions of the Companies Act and Singapore Financial Reporting Standards," said Olam. "We will clear our name and hold Muddy Waters accountable for their damaging actions." |
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Rino
Overall Sentiment: 0
Relevance: 0.100548
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John Paulson
Overall Sentiment: -0.384157
Relevance: 0.0875184
Duoyuan
Overall Sentiment: 0.121255
Relevance: 0.0721907
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