The Noble nightmare continues

In Feb 2017, Noble announced small profit for the previous year. And there was rumours of Sinochem coming in as a strategic investor. CEO Alizera resigned, paving the way for new management to chart a new direction. Is this a new chapter for Noble? Markets cheered.

But no. It is a sucker’s trade for the unsuspecting

  • May 9 – Noble issued a profit warning.
  • May 10 – Noble’s stocks and bonds collapsed.
  • May 11 – Noble reports loss, but quickly appointed turnaround specialist Peter Brough to Chairman to undertake strategic review.

Is this the light at the end of the tunnel?

Nope. It is another sucker’s trade.

  • May 15 – Moody’s downgraded Noble’s ratings and warned of unsustainable debt.
  • May 16 – SGX says it is closely monitoring the situation.
  • May 16 – Fitch cuts Noble’s ratings and warned it need external debt in 2018.
  • May 22 – Reuters reports that Sinochem is not longer interested in investing in Noble.
  • May 23 – S&P cuts Noble’s ratings to junk and says it may default.
  • May 23 – Noble’s share price plunged 30% and is now suspended.

Noble has been a losing trade in the past 5 years.

  • Management failed to deliver in its restructuring
  • Management failed to address the accounting questions.
  • Management has consistently disappointed.
  • The critics were right – you just can’t trust Noble’s management.

Don’t be the next sucker.