Thursday, July 23, 2015

Hot stock: Noble tumbles to multi-year low after Iceberg casts doubts on third-party review

COMMODITY trader Noble Group fell on Thursday morning to its lowest point in at least five years after research outfit Iceberg Research cast doubts on whether third-party review of the group's governance framework could solve its problems.

As at 11.12am, the stock had lost more than 4.6 per cent to S$0.620 amid heavy selling, three Singapore cents down from its Wednesday close. About 46 million shares had changed hands.
Noble had said on July 7 that a newly established independent board committee made up of four of its non-executive independent directors has appointed PricewaterhouseCoopers (PwC) to conduct a third-party review of its marked-to-market models, valuations and governance framework.

However, Iceberg on Wednesday said Noble has not clearly defined the scope of the review. It believes PwC will work on the valuation framework, rather than the valuation of the portfolio itself.

No comments:

Post a Comment