Tug-of-Fools: Olam

PalmTreesThe stock market is all about opinions, and those opinions could translate into people who might want to buy or sell a share. If there are more buyers for a particular share than there are sellers, then the price of that share is likely to rise. If there are more sellers than buyers, then the opposite could happen.

Opinion is what matters when investing. So, starting this week, we are launching a new series of articles in which two writers will express their personal views about a particular share.

One will tell you in 500 words or less, why they like a particular company. The other will explain why they don’t. After you have read the two arguments, you can form your own opinion about who might be right and who’s got it wrong. As I said at the outset, opinion is what matters.

This week, David Kuo and Chong Ser Jing dig in their heels as they tug over palm oil producer Olam International (SGX: O32), Singapore’s fourth-largest agricultural company with a market value of S$4.5b.

The company was founded in Nigeria in 1989 but moved its operation to Singapore in 1996. Then in 2005, Olam was floated on the Singapore Stock Exchange. It is currently a constituent of Singapore’s Straits Times Index (SGX: ^STI).

Just over a third of the company’s outstanding shares are held by financial institutions that include Orbis Investment Management and UBS Global Asset Management. The company’s largest single shareholder is Temasek Holdings, which owns 24% of the outstanding shares. We private investors own about 6% of the business.

Click here to see why David is bullish about Olam, and click here for Ser Jing’s bear argument.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore Director David Kuo doesn’t own shares in any companies mentioned.