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  "documentTitle": "Olam International Ltd. (SGX:O32)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson Block",
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  "presentationDate": "2012-11-27 00:00:00",
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  "notes": "The slide uses a highly critical, investigative tone, referencing Enron as a precedent for accounting-driven asset purchasing.",
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      "text": "Olam is now riding the tiger. We think the only way off at this point is to fall.",
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      "text": "non-cash accounting gains: 37.9%",
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      "text": "Olam frequently books non-cash accounting gains (\"NCAGs\") in its income statement. The two primary non-cash accounting gains Olam records are negative goodwill and biological gains.",
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      "text": "One quarter ago (as of the end of FY2012), Olam seems to have had only three weeks of operating cash. The Company reported S$1.1 billion in cash, but that number is misleading. S$602.1 million of the cash balance appears to come from Olam withdrawing significant margin from its brokerage accounts.",
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      "text": "From FY2010 through FY2012, NCAGs equated to 37.9% of Olam's PAT. It is well-known that biological gains are driven by valuation models. However, we think that analysts misunderstand how Olam generates much of its negative goodwill.",
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      "text": "Not to worry though, Olam CEO Sunny Verghese says that management runs a “clean honest business”. — Olam CEO Sunny Verghese",
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      "text": "Calculated assuming no taxes on biological gains, remeasurement of investment, and negative goodwill. http://www.ft.com/intl/cms/s/0/2114ef1c-36b3-11e2-a90e-00144feabdc0.html#axzz2DLEwvu3B. Per Olam's audited FY2012 Cash Flow statement",
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      "text": "Olam's Aggressive Accounting Masks its Poor Performance and Incentivizes it to Spend Increasingly Precious Cash",
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