Short-Term Investment: Olam Int.

Sector: Commerce; Wholesale

Background Information:
Olam International) is a leading global integrated supply chain manager of agricultural products and food ingredients, sourcing 17 products with a direct presence in over 56 countries and supplying them to over 3,800 customers in more than 55 destination markets.

Olam has become one of the leading traders of agricultural commodities such as cocoa, coffee, cashew, sesame, rice and teak. Headquartered in Singapore, it ranks among the top 40 largest listed companies in Singapore in terms of market capitalization.

Subsidaries:
-Universal Blanchers LLC in the United States

2008: Awards
-Most Transparent Company, SIAS Investors Choice Awards 2008
-2008 World Business and Development Award

Leaders:
Chairman: Rangareddy Jayachandran
-35 years of experience covering diverse areas of capital raising, strategic planning and business development
-Completed Advanced Management Program (AMP) of the Graduate School of Business Administration, Harvard University in 1995
-Member of the Governance & Nomination and Management Development & Compensation Committees

Vice Chairman: Narain Girdhar Chanrai
-Working experiencein various Group operations in Africa, UK and Singapore
-Member of the Governance & Nomination Committee and the Finance & Investment Committee

Data (as of 2008-06-30):
Current Ratio: 1.257
Closing Price (as of 2009-03-12): $1.19
Debt to Equity Ratio: 7.845
Dividend Cover: 3.916
Dividend Per Share 0.025 SGD
Dividend Yield: 2.033%
Net Tangible Assets Per Share: 0.297 SGD
Price Earnings Ratio: 11.965
Return On Equity: 26.269%
Return On Total Assets: 2.692%
Market Capitalization: $2.02171B
Net Profit in 2008: $0.167B

Reasons to buy:
a) RoE profiting
b) Prices consistent despite current economic crisis
c) Leaders have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
d) Multiple sources of income ensures that economic crisis today not affect adversely financial status of company when it hits a specific sector
e) Heavy debts = Short-term investment over long-term investment

No of Shares Bought: 3000
Entry Price: $1.200
No Shares Shares Sold: 3000
Exit Price: $1.21
Profit: $32.79

Sources:
www.sgx.com
www.cimbinvest.com
Olam International 2008 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho