The news of white knight, is probably the recent support of market price...
(not vested)
Noble could use new backer for confidence shortcut
HONG KONG (Aug 4): The right backer could give Noble Group ( Financial Dashboard) a shortcut to confidence. The beleaguered commodity trader's shares rebounded after it flagged outside interest in a potential financing or tie-up. In time, the Singapore-listed group will need to address concerns about its accounts. But finding a heavyweight partner would be a useful interim step.
Short-sellers and a commodity rout have put Noble under incredible strain. Even factoring in the recent bounce-back, the group's market value has crashed to US$3.6 billion ($2.6 billion), from US$9.5 billion in a year. Shorts have borrowed almost one in 10 shares. And the cost of insuring against default is nearing 700 basis points – extraordinary for an investment-grade outfit, even if trading is thin.
In the latest fightback, Noble rushed forward results and an outside review of its accounts to Aug. 10. It also denied bond redemption problems, and flagged interest from unnamed potential investors.
The last bit is most intriguing. Noble says it has US$15 billion of bank lines, so there is no obvious need for cash. Any deal would be about demonstrating that others share its self-belief. An ideal transaction would show confidence in Noble's figures; signal the business is both undervalued and not desperate for funds; and not hurt existing shareholders too badly.
That means price, structure and the counterparty's identity all matter. An expensive fund-raising would only raise more questions. Selling or mortgaging assets or subsidiaries would do little to ease concerns about the parent company's accounts. An endorsement from blue-chip investors with purely financial goals would be worth more than support from vested interests from Singapore or China.
As it stands, Noble has the right sell up to 20% of the company to new investors without approval from shareholders. But such a deal would be very dilutive for existing holders unless the new buyer was willing to pay a hefty premium.
A better alternative for flagging value might be to issue a bond that converts into Noble shares far above the current price. If such a trade is on the table, it would be worth exploring.
http://www.theedgemarkets.com/sg/article...e-shortcut
The company has provided a good support to investor confidence. I hope the company financial isn't overly stressed...
(not vested)
Noble Group says it has redeemed notes due 2015 and 2020
SINGAPORE (Aug 6): Commodities group Noble Group ( Financial Dashboard) says on Thursday that it has fully redeemed the 2015 and 2020 securities the day before.
The redeemed 2015 securities have been cancelled on Aug 5, 2015, the scheduled maturity date, and there are no 2015 securities outstanding.
It has also redeemed its US$235 million 6.625% senior notes due 2020 in full. The redeemed 2020 securities have been cancelled on Aug 5, 2015, and there are no 2020 securities outstanding.
The troubled firm had said last Friday that it had enough cash and liquidity to fund its bond redemption and operations.
http://www.theedgemarkets.com/sg/article...5-and-2020
Is the damage done... is it reversible? Turmoil on global commodities probably added more doubts on a trader... a trader is afterall a trader with low visibility of earnings...
Why It Matters
Noble's bid to silence sceptics
Noble has been mired in allegations of accounting fraud and poor governance since February. PHOTO: REUTERS
Published
2 hours ago
Wong Wei Han
When Singapore-listed Noble Group unveils its second-quarter results next Monday, the commodity trading giant will come under more scrutiny than ever in its long war against critics.
Noble has been mired in allegations of accounting fraud and poor governance since February, following reports by an anonymous outfit called Iceberg Research. Its share price plunged more than 50 per cent amid a serious erosion of public confidence and furious short-selling.
Noble's management no doubt hopes it can silence the sceptics once and for all on Monday, in releasing what it has flagged as a "satisfactory" set of figures. Crucially, the firm will also offer more information on some of the areas Iceberg has focused on. Findings of a PwC review on its contentious mark-to-market business model - a way of valuing assets - will also be presented.
If Noble can properly address the concerns, it may finally draw a line under the prolonged stock market drama that has captured global headlines.
But the guiding principle is unchanged: Companies should always stay on the front foot in maintaining public trust. That entails timely, proper disclosure on issues under the spotlight, even if it means sharing more information than usual.
One reason Noble shares tumbled so badly was that management - fronted by founder and chairman Richard Elman and chief executive Yusuf Alireza - was often a step behind in responding to criticism, which they seem to take as a personal affront. And when Noble did respond, the information was often in bits and pieces, insufficient to fully address the concerns raised.
Worse, at Noble's annual general meeting in April, Mr Elman further irked the public by refusing to entertain questions that might have dispelled investors' concerns.
The main argument has been that it could not risk losing its competitive edge by sharing too much internal information. That may well be true.
But as Noble now attempts its most open interaction with the public yet, it would seem that perhaps it should have done this earlier to avoid the extensive damage inflicted on its shareholder value.
Aug 4 2015 at 9:49 AM Updated Aug 4 2015 at 4:29 PM
Noble Group's accounting policy woes lead to 28pc share price drop
The big problems for Noble, which is Asia's biggest trader of commodities like gold, started in February, when a group called Iceberg started raising questions about its accounting policies. Phil Carrick
by James Thomson
It's unlikely the top brass at Noble Group will get much time to celebrate the 50th anniversary of Singapore slated for this weekend.
On Monday the company announced that it was bringing forward its second-quarter results by three days to August 10, which is the Monday after Singapore's big party and a bank holiday.
Singapore-listed, Hong Kong-based Noble is attempting to fight a rearguard action against a barrage of selling that caused its shares to fall 28 per cent last week.
The big worry hanging over Noble – its accounting policies – provides an important lesson for any business.
Quite simply, questions about your numbers almost always lead to big problems and falling share prices.
The big problems for Noble, which is Asia's biggest trader of commodities, started in February, when an until-then unknown research group called Iceberg started raising questions about its accounting policies, comparing the company to Enron, the infamous US energy company that collapsed spectacularly in 2001.
In a fascinating Australian connection, the anonymous Iceberg has also questioned the way Noble has valued its investment in ASX-listed coal miner Yancoal.
Noble stock has fallen 60 per cent in 2015 as short sellers, including a group called Muddy Waters – yes, Iceberg and Muddy Waters are both attacking the company in a headline writer's dream – piled in, raising more questions.
Even ratings agency Standard & Poor's joined the party, warning in June that Noble could have its debt downgraded, potentially increasing its not insubstantial borrowing costs, because of the volatility created in part by the way the company valued its long-term trading contracts.
INVESTORS WARNED TO 'EXERCISE CAUTION'
Noble has defended itself throughout and said Iceberg was a front for a disgruntled former staffer, who it is suing in Hong Kong. But in July it appointed PwC to conduct a review of its accounting policies in "the interests of transparency".
But that wasn't enough to halt last week's massive fall, which coincided with Noble being forced to end its program of share buybacks by Singapore Stock Exchange rules that prevent buybacks in the two weeks before a company releases results. There are suggestions that a "bear raid" took place while Noble couldn't use the buybacks to defend itself.
The sell-off prompted the SGX to warn investors they should "exercise caution" when trading in Noble shares.
But Noble hit back with all guns blazing on Monday. As well as releasing its results on August 10, it said it would also release the PwC report.
"The board of directors of Noble Group is not aware of any financial or material business issues that might have caused the company's recent share price decline and volatility," Noble said. "On Friday, and over the weekend, the board has, however, been made aware of misleading information being spread about the company in what appears to be an attempt to manipulate the company's share price.
"The board believes that all the misleading and untruthful information which has been disseminated will be fully and positively resolved by the publication of the company's Q2 results presentation, by the results of the previously announced PwC independent assurance report in connection with the carrying value of long-term physical commodity contracts, and by our previously announced forthcoming Investor Day."
Noble said the PwC report would address specific issues such as the Yancoal valuation. It also made it clear the company's results were looking strong.
"Based on management accounts, our second-quarter performance is satisfactory and we can also confirm that our business in the first month of [the third quarter] is ahead of our [second quarter]," it said.
Noble shares bounced 3.3 per cent on Monday, but it remains to be seen whether the stock will be re-rated following Monday's results and the release of the PwC report.
Regulator comment on the announcement...
SGX comments on Noble Group Limited’s 10 August announcements
Noble Group Limited today released several announcements including the PricewaterhouseCoopers LLP (PWC)
review of mark-to-market (MTM) valuation of commodity derivatives and recommendations for further
improvements.
SGX notes the announcements including:
Noble’s decision to release both the independent assurance and the management reports by PWC for
greater transparency.
The Independent MTM committee and board’s acceptance of PWC's recommendations and that they will
take steps to ensure their implementation
The response to address comments about the Committee and PwC and their independence
Investors with questions on the MTM valuation should refer to the announcements and seek clarification from
Noble if needed, at its 17 August Investor Day Singapore.
SGX is closely monitoring developments related to Noble including any unusual share trading activity, rumours or
speculation. We will take the necessary action to maintain a fair, orderly and transparent market.
http://infopub.sgx.com/FileOpen/20150810...eID=364089
Reuters report on Noble latest announcement. Yes, generate actual OCF, is the most assurance to shareholders...
Noble Group clears first of four comeback hurdles
By Reuters / Reuters | August 11, 2015 : 2:40 PM MYT
SINGAPORE (Aug 11): Noble Group ( Financial Dashboard) has taken a step towards stock market rehabilitation. A detailed review by PricewaterhouseCoopers has gone some way towards reassuring investors about the Singapore outfit's mark-to-market (MTM) accounting. Next the embattled commodity trader must adopt the report's recommendations; reassure shareholders in person – and generate some actual operating cash flow.
The much-anticipated all-clear is not as comprehensive as it might have been, because the audit firm tested against Noble's own framework for meeting accounting and industry standards. Unhelpfully, PwC says it also looked at the "completeness and appropriateness" of these self-imposed criteria but offers no explicit judgment.
...
http://www.theedgemarkets.com/sg/article...ck-hurdles
seem like the majority of singaporean retail investors are speculators and the recent push to 60cent level is a chance manufactured by the big boys for them to sell off some shares to those unawares.
stratech and noble, two crappy companies seems to be the favourites for traders today...