Noble
Group (SGX: N21) – a renowned Singapore-listed physical commodities
trader is a market leading global supply chain manager of Energy, Metals
and Carbon Steel material and Power and Gas products. But despite such a
huge name in the commodity market, Noble group share priceshave fallen by 62% in June 2016. As a result, they returned to a small profit of $8.2m last year.
With
an aim to uncover all the hidden facts and to analyze the latest trend.
here, in this quick hit referral guide, I am going to answer you with
some of the most valuable questions about Noble Group. Which ultimately
let you with the clear-cut vision about your investment strategy for Noble.
Why Have Noble Group Limited’s Shares Fallen?
From the past few years since 2002 when the company got included in Fortune 500. Noble group shares had been considered as a blue-chip stock. But last year in 2016 CapitaLand Commercial Trustreplaced Noble stocks from Straits Times Index. Losing up with its blue-chip label Noble group share prices suffers a lot.
Acc
to many renowned market analyst – The reason behind is the sudden
resignation of their former CEO Yusuf Alireza. It may be one of the
profound managerial reason But what I think the reason behind for this
sudden fall is-
Poor Business Performance
Well,
if we draw our attention at these facts, we ourselves will conclude the
above statement. Noble group share prices which are continuously
showing a downtrend from 2010 trading at its lowest price of S$2.10 in
2012 and S$1.55 in 2013. This downfall has taken a giant form in 2016
when Noble group quarterly revenue was cut down by 32% year-on-year to
US$11.4 billion, as a result, its profit attributable to shareholders
had plunged by 62% to US$40.5 million.
Why Is Noble Group Limited A Risky Stock For Investors?
Looking closer at the company’s track record in generating cash flow. We can find that from 2010 to 2015, Noble Group Limited has
generated negative operating cash flow in this three years. Meanwhile,
in 2016 the company’s business churned out a negative US$486 million in
operating cash flow.
So it can be said that “Cheap rubbish is still rubbish”
that is no matter for how long Noble is trading low and for how long it
will trade low, what matter is Noble Group is still trading at its
lowest and is continuously showing a downtrend.
So why to trade for an all-time low trading stock? Right or not?
Noble Latest News & Analysis:
According to Noble Group latest news release,
2016 was a year for them where they have made significant strides in
forming a solid foundation for their future development. They have
strengthened their capital base by US$ 500 million exceeded from their
targeted rising of US$4 billion with the sale of Noble Americas Energy Solutions (NES) in dec 2016. Along
with the rise in capital base, Noble Group has also reduced their Debt,
lowered their gearing and increased liquidity by US$ 2billion.
Joint CEOs, Will Randall and Jeff Frase commented “Although
we have more work to do, we look forward to 2017 with confidence, as we
complete the repositioning of the Group. With strong roots in Asia, we
believe we retain a unique capability to service energy and industrial
commodity demand in the emerging markets, where we see rising demand for
raw materials accompanied by an increasing flow of refined and
processed products.”
Singapore Stock Market Researcher Last Note:
I
hope the discussed question will definitely let you form a clear vision
of what to do with the Noble Group and how to deal with the Noble Group Share Prices to book a remarkable commodity profit. For all the latest Noble stock news Follow us www.mmfsolutions.sg
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