I can’t help but like this drama… And why?
While Muddy Waters is a business, one of our primary motivations is to try to level the playing field between managements (and their lawyers, consultants, investor relations firms, and auditors) on one hand, and investors on the other. It is seldom a fair game for retail investors, and we think that Olam’s attempt to foist more unrated debt upon retail investors is just another example of the sickness that ails today’s capital markets.
Muddy Waters Initiates Coverage on Olam International
Muddy Waters is Unimpressed with Olam’s Response; We Will Pay For Olam’s Debt to be Rated
Olam’s 180-Degree Reversal on Tapping the Markets Validates MW’s Thesis, and Raises More Concerns
I pulled the last sentence from each paragraph of Muddy Water’s open letter to Olam, it makes for a nice mix of honest humor and corporate poetry.
To Olam CEO Sunny Verghese and the Board of Directors:
It has further evidenced a bizarre fixation on baseball caps.
We also note Olam’s attempts to impugn our credibility.
Your actions have been an abject failure of leadership.
Know this: You voluntarily came to the market, you subjected yourselves to its forces, and you must bear the consequences of your ineptitude.
I can’t help imagining Jon Stewart say “Bam” when I read the word ineptitude. If you’re interested in the full letter, it’s here.