Noble Group managed to sell its US Energy unit at US$ 1bn


LQM 0094FFThe Noble Group agreed to sell its US energy unit to Calpine Corp for US$ 800 million plus working capital, estimated at an additional $248 million to Calpine Corp, according to the news reported this morning.

This deal marked an important step in completing the company’s $2 billion capital-raising initiative. This largely alleviated the concerns of a liquidity squeeze that the company has faced during commodities slump, and may aid in Noble Group’s turnaround.

It has also helped to explain the tremendous rally of Noble’s share price, which has surged more than 26% over last week alone.

The share price rally was accompanied by spiking volume, signaling that the retail and institutional investors are back in the market. Similarly, major shareholders have been boosting their stakes in the third quarter as well.

--  Margaret Yang Yan, CFA

Market Analyst

CMC Markets Singapore

LQM ad141eThe recent small mid cap seems to be as hot as the China property market.

For example, Geo Energy Resources has risen almost 90% from $0.090 on 3 Aug to $0.170 last Fri. Some clients who do not typically trade are starting to pile into the market. They are buying small cap or penny stocks (which have already surged a lot) for the hope of selling them at higher prices.

SDJ1.16aSDJ coal mine of Geo Energy Resources. Photo: CompanyWith reference to my write-up on 23 Sep 2016 (see HERE), I wrote that I continued to be cautious on the general market, while remain positive on selective stocks. Since 23 Sep, I have taken profit and reduced my allocation from around 54- 55% invested in the market to around 24% as on 7 Oct 2016.

I reiterate my cautious stance in the general market while remain ready to accumulate selective stocks on weakness. 


-- Ernest Lim, CFA, CA Singapore

Share Prices

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AEM Holdings3.7300.030
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Best World1.760-
Broadway Ind0.120-
China Sunsine0.4000.005
Food Empire0.630-0.010
Fortress Minerals0.370-0.005
Geo Energy Res0.350-0.005
Golden Energy0.790-0.005
GSS Energy0.048-
ISDN Holdings0.400-
IX Biopharma0.124-0.001
Jiutian Chemical0.0810.001
KSH Holdings0.350-
Leader Env0.056-
Medtecs Intl0.134-0.002
Meta Health0.025-
Nordic Group0.4700.005
Oxley Holdings0.1540.003
REX International0.2300.005
Sinostar PEC0.185-
Southern Alliance Mining0.4200.010
Straco Corp.0.4050.010
Sunpower Group0.275-
The Trendlines0.0940.002
Totm Technologies0.099-0.003
UG Healthcare0.189-0.001
Uni-Asia Group0.8200.010
Wilmar Intl4.020-0.030
Yangzijiang Shipbldg1.350-0.030

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