Another 10 mil shares by the chairman, as show of confidence...
(not vested)
Noble chairman continues to lift stake in doubly-junked firm
12 Jan 2016 08:26
By Melissa Tan
NOBLE Group founder and chairman Richard Elman has pumped more money into buying shares in the commodity trader on the open market.
He paid S$3.34 million for another 10 million shares on Monday, bringing his stake up to 22.28 per cent, according to a Singapore Exchange filing on Tuesday morning.
...
ource: Business Times Breaking News
Noble is now at the stage where they have to depend on the generosity of strangers.
If i am an OPMI, I will be willing to offload my shares to him. This is a commodity downcycle which will see Noble muddle through the next 5 years. I don't expect much and my prediction is Noble being out of the STI index
Based on Forbes 2015 list, Mr Richard is worth 1.8bil. His existing 22% stake in Noble based on today's closing price is 0.22*2.12bil = 467mil.
In the last few days, he has spent ~6mil (or 6/1800 = 0.3% of his networth) to defend 467/1800=26% of his networth.
Noble looks like it cannot survive without a rights issue to raise funds to pay off debt if banking facilities are cut off? Will he be willing to assemble a bazooka (but in this case, the presence of the bazooka is not enough, it has to be utilized)
Bloomberg - Noble Default Risk Rises Most in Asia on Debt Payment Challenge
http://bloom.bg/1P3mUTs
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STI got hit quite badly during the sell down of late.
What is notable is the weaker companies(weak cash flow, plenty debt, little cash) got beaten down really bad.
The ones flushed with cash are not so much affected. Value is beginning to emerge with the lower prices, some yield quite good/consistent dividends.
Question is how much bullets you have left and the strategy/timeline on how to use them to pick up some value buys.
(18-01-2016, 12:50 PM)Big Toe Wrote: [ -> ]STI got hit quite badly during the sell down of late.
What is notable is the weaker companies(weak cash flow, plenty debt, little cash) got beaten down really bad.
The ones flushed with cash are not so much affected. Value is beginning to emerge with the lower prices, some yield quite good/consistent dividends.
Question is how much bullets you have left and the strategy/timeline on how to use them to pick up some value buys.
yes sir, just buy slowly,
no one knows how long/low the market will be...
Being modest, is an important value, IMO. I reckon, Mr. Elman has became wiser
(not vested)
Noble Group's Elman sees future as smaller, nimble company
22 Jan 2016 18:04
[HONG KONG] Noble Group, Asia's biggest commodities trader, expects to ride out the market downturn and recover from recent accounting-related allegations by turning into a nimble and asset-light company, its founder and chairman Richard Elman told Reuters in an interview on Friday.
Mr Elman, 75, said he sees no further disruptions to the business from charges that Noble inflated its assets by billions of dollars by inaccurately representing the value of its contracts.
"We need to go back to being modest and cautious and economical," said Mr Elman, who set up the Hong Kong-based group with US$100,000 in 1986.
...
REUTERS
Source: Business Times Breaking News
What is your view? I have problem, valuing the company, due to their complex biz model, with derivatives.
(not vested)
Battered Noble Group is ‘bargain of the decade’ for Religare
SINGAPORE (Jan 29): The worst performing stock on Singapore’s Straits Times Index is actually the bargain of the decade, according to Religare Capital Markets, which started coverage of commodity trader Noble Group ( Valuation: 1.80, Fundamental: 0.35) with a buy call backed by forecasts for rising profit and sales.
“The stock is at a quarter of its average valuation in the last decade,” analyst Nirgunan Tiruchelvam wrote in a report, with a target of 37 cents, compared with Thursday’s close of 27 cents. The Hong Kong-based company is “the bargain of the decade,” according to a headline in the note.
...
http://www.theedgemarkets.com/sg/article...9-religare
How is this a bargain? I only see a company with a lot of debt and no real way to service it due to poor business climate (e.g commodities)