Question by a friend:
Dear Daniel, your site is very insightful and I enjoy reading it. Can
you please comment on olam because a lot of shareholders would like to
know if they should dump their olam shares. Many thank.
Answer by Daniel:
Thank you! Olam is really a difficult subject as this stock involves a lot of uncertainties. Short term wise, I have not seen players coming in to accumulate the stock. Do remember that short term players like us don't like uncertainties. Even if this stock break the $1.70 barrier, I would not want it in my portfolio.
Long term wise, I think Olam might be cautious about their next earnings report now. Although they are one of the fastest growing company in singapore with a high growth rate, they may tone down in their coming earnings results which might inevitably lower their earnings. This is something that investors need to take into consideration whether to hold a not. There are better companies out there with good earnings and trending up for you to switch to.
For me, I will switch my portfolio for others. If Olam revives again and you want to gamble, then come back at a later stage.