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  "documentTitle": "Olam International (OLAM)",
  "authorId": "51_Muddy_Waters",
  "authorName": "Carson C. Block",
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  "presentationDate": "2013-02-08 00:00:00",
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  "notes": "This is a research note from Muddy Waters, LLC regarding Olam International Ltd.",
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      "text": "Olam's net debt to LTM adjusted EBITDA is now 8.4x, compared to 7.8x at the end of Q1. These numbers are dangerously high.",
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      "text": "While Olam generated positive operating cash flow in Q2, interest expense was 69.9% of OCF. With Olam’s bonds yielding approximately 7% to 8%, Olam’s interest burden is not sustainable.",
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      "text": "Olam’s YOY Q2 sales increase of 24.3% supports our conclusion that Olam’s core trading business is faltering. Tonnage grew far faster than sales – 71.9%. Further, Olam’s PAT excluding extraordinary gains decreased YOY 6.3%.",
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      "text": "Olam’s main problems worsened in Q2. Its free cash burn was S$169.6 million for the quarter, and its borrowings increased 5.6% QOQ to S$8,836.4 million. Olam’s gross debt to LTM adjusted EBITDA is now 9.5x, compared to 9.3x at the end of Q1.",
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      "text": "On the positive side, Olam management stated that it does not expect its debt to increase in 2H 2013. Hopefully for investors, this prediction will turn out to be more accurate than Mr. Verghese’s November 29, 2012 statement.",
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      "text": "One of the bright spots for Olam investors is that the Company appears to be trying to rein in its CapEx and acquisition spending.",
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      "text": "net debt to LTM adjusted EBITDA: 8.4x",
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      "text": "Muddy Waters retains our original investment thesis and Strong Sell rating on Olam’s shares. Our analysis of Olam’s Q2 2013 results follows.",
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      "text": "Footnotes 1-6 detailing financial adjustments and report references.",
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      "text": "Q2 Results – Still Feeling the Burn",
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