Noble Group

http://infopub.sgx.com/FileOpen/Noble%20...eID=442401

Noble's new US $750 mil unsecured note is priced at an attractive 8.75% per annum. IMO, it will be sold out and the liquidity will be enough to tide Noble through to March 2022. The only question is at what expense to ordinary shareholders when perpetual security payment has to be paid as well.

Debt and more debt, if recent commodity upturn is just a dead cat bounce, noble will be in big trouble again.

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(07-03-2017, 09:05 AM)CY09 Wrote: http://infopub.sgx.com/FileOpen/Noble%20...eID=442401

Noble's new US $750 mil unsecured note is priced at an attractive 8.75% per annum. IMO, it will be sold out and the liquidity will be enough to tide Noble through to March 2022. The only question is at what expense to ordinary shareholders when perpetual security payment has to be paid to 2020 well.

Is 8.75% rate that attractive though? I'm not too in tune with recent debt pricing, but 8.75 seems high to me. Considering that just last year they were retiring bonds maturing 2020 with coupon rate 6.75%

Sudden turnaround in strategy? Or is this a rollover of short term to Long term debt? 
Either way it's still the operating positive cash flow that will make this a bull. No positive cash flow, this stock with forever be a target for shortist and naysayers.

Hi teddy,

Pardon my English. It is supposed to carry a tinge of sarcasm. The bonds at 8.75% interest for 5 years tenure is "priced to sell".

The debts is likely to be used as a rollover for its 1.2 bil bank debts due this year and next March's bond redemption.

Noble preps for a sale. Or at least its bonds do: Bloomberg Gadfly

http://www.theedgemarkets.com.sg/article...erg-gadfly

(07-03-2017, 08:26 PM)YMPL Wrote: Noble preps for a sale. Or at least its bonds do: Bloomberg Gadfly

http://www.theedgemarkets.com.sg/article...erg-gadfly

I believe there is no smoke without fire, and no waves without current. Probably true that Noble is serious about courting a new investor on board, maybe even Richard might sell part of his stake to this white knight. 

Still, there are many headwinds for Noble ahead, including interest rate rises(that would slowdown the commodity markets), political instability from US and China and climate change risks that can affect its coal business. 

Hoping that noble CEOs know how to run and scaled down business profitably and they can keep their talent from leaving the company. I'm vested in this share, but sitting on some profit buffers.  Will consider to add more of this stock if it can show positive cash flow in near term.

Share consolidation by the company.

PROPOSED CONSOLIDATION OF EVERY TEN ORDINARY SHARES IN THE
SHARE CAPITAL OF NOBLE GROUP LIMITED INTO ONE ORDINARY SHARE,
FRACTIONAL ENTITLEMENTS TO BE DISREGARDED
http://infopub.sgx.com/FileOpen/Announce...eID=443390

https://www.ft.com/content/8b4df389-d3f2...f43e7ed685

Trafigura raised debt at 6.75% vs the 8.75% "junk" bond sale by noble. Seems like the market isn't that much in love with commodity Traders at the moment.
Share consolidation should be seen as a boon in my opinion. Reduction in number of shares should put a squeeze on shortists, and higher transaction costs per unit would discourage retail speculators. My feel is that the final shareholders would be the true blue big boys with strong hands.

A lot of wishful thinking.

Struggles encountered by Cofco when they acquired Noble agri should tell a lesson.

Noble Group growth seems very artificial, volume is at any cost in order to compel name recognition.
A great deal of crictism should be levelled at them for their lack of financial substance.

https://noblegroupresearch.wordpress.com...ble-group/

The audited inventory-in-transit, the level of RMI, and the peers analysis both place Noble as a company with implied revenues 11X to 12X less the amount reported.
Inventory-in-transit of $2.6M for a company for a cost of goods sold of $48,58B in 2016 ?
Noble is not a $97.6B sales company.