By now, investors of Noble Group must be feeling jaded. Investing in this SGX-listed commodities trader has been challenging with the wild swing in share prices in recent months. The roller coaster ride was a result of various key developments taking place within a short span of time. So, is Noble Group really doomed?
The past two years had been a scary nightmare for Noble Group as the group was initially criticized by research house, Iceberg Research, over its accounting practice. The negative report unexpectedly led to ferocious short-selling attacks and caused the share price to plunge to frightening new lows.
As the management fend off the relentless attacks, former CEO Yusuf Alireza resigned in May and Chairman Elman announced that he would step down within 12 months. To make things worse, Noble Group announced a record loss of USD 1.6 billion for 2015, its first loss in almost 20 years. Many investors feared the worst for Noble Group.
In my previous article, I wrote an analysis of Noble Group and determined an entry price of $0.12 which provided me a level in which I would feel comfortable to invest in. Honestly, in my point of view, it is unlikely that Noble Group will fold because of its long history of strong backing from China’s sovereign wealth fund, China Investment Corp (CIC).Read more