Thursday, 7 July 2016

Was it a right choice to sold off Noble?

A recapped, about a month after the sold off, and about a week after it XR. Have sold off Noble shares on 03 Jun 2016. Let's see whether did 穷小子 had made the right choices so far.

From the price at $0.26 on 03 Jun 2016, to the closed price at $0.215 on 27 Jun 2016 (the day before XR). It is about a drop of 17.3%.

Based on the formula, and with the rights issued price of $0.11, the theoretical price should be $0.1625. Due to whatever the reasons, it closed at $0.18 on the 28 Jun 2016 (the XR date) which is higher than the theoretical price.

The mother share closed at $0.184 today, 07 July, and with Noble R share closed at 0.074.

穷小子 sold his 3,000 shares on 03 Jun, the value is about $780.

If 穷小子 had hold his shares until now, and with the exercise of the rights shares:
The total value for the 6,000 shares will be valued at $1,104 based on the today's closed price at $0.184, and not forgetting to deduct $330 from this for the purchasing of the rights shares, which gives about $774.
Okie, no much difference in value, only $6. The few hundreds actually makes no much differences from the 88% lost anyway.

As mentioned in the previous post, it is not the dollar which made the sell call, but is more on the trust and confidence in this company.
With the sudden departure of the CEO's and its founder, it's just doesn't feel comfortable with purchasing the rights, and especially with the reason of having the company's intention to used it for repaying the debts. All these doesn't sum up as a good choice.
Not mentioning about the Minimum Trade Price rules, how will Noble tackle it? From the way 穷小子 sees it is either do a share consolidation or delist it from SGX, unless the managing board have new tricks under their sleeves.

It may continue its downwards trend from where it is currently. This shall be the last post regarding to Noble. Have decided to remove this from my watchlist. I don't see the point of keeping track of this any further, unless its fundamentals have changed.

On the side track, 穷小子 managed to have some profits from the Euro. Hehe.


  1. need to note all bad news are more or less factored in by the market, noble might have hit bottom, might in the end dissolve. but at this price, the injected rights fund definitely look at huge return at this risk level. just my 2 cents.

    1. Market may have factored in the bad news, but their rights issued is still more for repaying their debts. Nothing much will be changed in the near term. No ones knows what would happened next for this company. It may seems to be a long way down before it can gets any better from the way I sees it.

      Have learnt my mistakes for not selling it earlier, so would rather use what it remains to enjoy. Haha.