There are many good businesses that are always silent and quietly labouring...
Noble will walk into history eventually...
Enjoy the drama...
Odd Lots Vested
GG
(07-07-2015, 09:29 AM)CityFarmer Wrote: [ -> ]One more initiative to restore confidence, beside the share-buy-back. The latest update shows the treasury share is slightly more than 2% of outstanding shares.
Noble Group appoints PwC to review its mark-to-market models and valuations.
http://www.theedgemarkets.com/sg/article...valuations
(not vested)
saw this news, so just post it
The worst is yet to come for beleaguered Noble Group
Short-term earnings will miss market expectations.
The worst may be yet to come for embattled commodities trader Noble Group.
Maybank Kim Eng analyst Wei Bin noted in a report that Noble's earnings could be under greater pressure in the near term due to low commodity prices, potential impairment of upstream assets, and more conservative earnings recognition by the group.
"We think the concerns are valid. Short-term earnings are likely to miss market expectations due to lower trading margins, potential further asset impairments and more conservative revenue recognition after Iceberg’s and Muddy Waters’ allegations. S&P’s recent downgrade of Noble’s outlook from ‘stable’ to ‘negative’ also raised the spectre of an eventual credit-rating downgrade," Wei said.
Wei also warned that the group faces more operational challenges at present than during the Global Financial Crisis.
“Noble is trading at 0.6x FY16 P/BV, near its 0.5x bottom during GFC. However, unlike that period when the Chinese government stimulated its economy with a CNY4t infrastructure-investment plan which boosted demand for commodities, we think Noble faces more challenges now. Chinese demand is down and its interest expense could potentially rise with a credit-rating downgrade potentially on the cards,” he noted
Noble is a black box... noone has any clues on how the operations are being conducted and hence IMHO there is no expectations whatsoever to talk about...
Just patiently wait for the eventual outcome...
Odd Lots Vested
(13-07-2015, 10:08 AM)testwrite Wrote: [ -> ]saw this news, so just post it
The worst is yet to come for beleaguered Noble Group
Short-term earnings will miss market expectations.
The worst may be yet to come for embattled commodities trader Noble Group.
Maybank Kim Eng analyst Wei Bin noted in a report that Noble's earnings could be under greater pressure in the near term due to low commodity prices, potential impairment of upstream assets, and more conservative earnings recognition by the group.
"We think the concerns are valid. Short-term earnings are likely to miss market expectations due to lower trading margins, potential further asset impairments and more conservative revenue recognition after Iceberg’s and Muddy Waters’ allegations. S&P’s recent downgrade of Noble’s outlook from ‘stable’ to ‘negative’ also raised the spectre of an eventual credit-rating downgrade," Wei said.
Wei also warned that the group faces more operational challenges at present than during the Global Financial Crisis.
“Noble is trading at 0.6x FY16 P/BV, near its 0.5x bottom during GFC. However, unlike that period when the Chinese government stimulated its economy with a CNY4t infrastructure-investment plan which boosted demand for commodities, we think Noble faces more challenges now. Chinese demand is down and its interest expense could potentially rise with a credit-rating downgrade potentially on the cards,” he noted
Investor relation (IR) is part of the "chores" of a public company. I am always "amazed" by those have chosen to work in wet market, but keep complaining on the wet and dirty floor...
With new auditor, Noble seeks to move on from attacks on accounting practices
SINGAPORE (July 14): Noble Group ( Financial Dashboard)'s hiring of a second auditor to review its accounts marked a change of heart for a company that has defended its accounting practices for months, but its top brass felt compelled to draw a line under the problem, according to a person with direct knowledge of the matter.
Hit by a critical report in February from little known Iceberg Research and later echoed by short-seller Muddy Waters and others, the board of Asia's biggest commodity trader became convinced that detailed rebuttals and reassuring words were not enough to soothe market qualms.
Noble, accused of inflating assets by billions of dollars, faced two main choices: get a new Big Four auditor or find an investor to buy a stake in its commodity assets at a price that would validate its accounting methods, the person said. The company chose the less complicated option.
"This is really the way of just saying, 'enough is enough, put a line behind this'," he told Reuters.
...
http://www.theedgemarkets.com/sg/article...-practices
Michael Dee's view on the independent committee. Full article, please refer to the ST article.
(not vested)
Hand-picked Noble committee not independent
15 Jul 2015 09:00
By Michael Dee
THE recent announcement by the Noble Group that it has established an independent committee to review its accounting practises warrants a response.
This is a small step in the wrong direction. My problem with this supposedly independent committee is its extremely narrow and limited scope of only looking at mark-to-market (MTM) valuations and that only a Noble vetted summary will be released by the board committee. This hand-picked, insider board committee should not in anyway be considered "independent".
Noble is engaging in a PR exercise in which I, for one, have no confidence. As long as Richard Elman, the 75-year-old founder and executive chairman of Noble 20 per cent shareholder and member of the audit, nominating and compensation committees, has a formal role in Noble, there can be no possibility of a truly independent assessment of Noble's accounting.
Three of the four members of Noble's newly appointed "independent" accounting review committee, including its chairman, are all existing members of the audit committee which includes Mr Elman.
...
Source: Business Times
Iceberg expresses doubt over effectiveness of PwC review of Noble
JUL 21, 2015 3:07 PM
Iceberg Research on Tuesday afternoon fired another salvo at Noble Group, expressing its doubt that the appointment of PricewaterhouseCoopers (PwC) to conduct a review will solve the commodity trader's problems.
"Noble has not clearly defined the scope of the review," said Iceberg Research, which believes that PwC will work on the valuation framework, rather than the valuation of the portfolio itself, combing through it counterparty by counterparty.
PwC will also not answer the question that investors and creditors want, Iceberg added, which is whether Noble violates the spirit of the law to overstate its mark to market valuations.
Noble reply to Iceberg report.
(not vested)
Noble rebuts Iceberg report, asserts that its accounting is “robust”
SINGAPORE (July 22): Noble issued a short reply on Wednesday emphaising that it has a “robust” accounting process and the support of its stakeholders, in response to criticism by Iceberg Research the previous day that the commodities trader had ordered a financial review simply to buy time.
...
http://www.theedgemarkets.com/sg/article...t%E2%80%9D