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

You may also be interested in:

You have no rights to post comments

Counter NameLastChange
AEM Holdings2.3000.060
Avi-Tech Electronics0.265-
Best World1.7000.020
Broadway Ind0.0960.001
China Sunsine0.390-0.010
Delfi Limited0.930-0.035
Food Empire1.420-0.020
Fortress Minerals0.280-
Geo Energy Res0.3600.020
GSS Energy0.0270.001
Hong Leong Finance2.470-0.010
Hongkong Land (USD)3.150-0.090
ISDN Holdings0.3200.005
IX Biopharma0.041-0.004
Jiutian Chemical0.024-0.001
KSH Holdings0.250-
Leader Env0.050-
Medtecs Intl0.1310.001
Nordic Group0.335-0.005
Oxley Holdings0.090-0.001
REX International0.1460.012
Sinostar PEC0.135-0.003
Southern Alliance Mining0.600-
Straco Corp.0.500-
Sunpower Group0.220-
The Trendlines0.085-
Totm Technologies0.021-0.002
Uni-Asia Group0.815-
Wilmar Intl3.3600.030
Yangzijiang Shipbldg1.780-0.010

We have 631 guests and no members online

rss_2 NextInsight - Latest News