A share price crash isn’t Noble’s biggest enemy: analyst

It needs to worry more about bankers and creditors.

Noble has a more insidious enemy apart from a visible share price decline. As the commodity trader came under fresh attack yesterday, an analyst warns that Noble will have to reckon with a potential dent in stakeholder confidence.

Nicholas Teo of CMC Markets notes that the biggest risk for Noble is the perception that key counterparties such as bankers and trade creditors may have.

“This group could include bankers and trade creditors, with any unfavorable change in credit lines or terms of trade being a larger risk than the negative moves in share price. While Muddy Waters concurred with most of Iceberg’s previous allegations, their own report only managed to offer new angles that were at best marginal compared to those of Iceberg’s,” stated Teo.

This group could include bankers and trade creditors, with any unfavorable change in credit lines or terms of trade being a larger risk than the negative moves in share price.

But Noble seems safe, at least for now. Teo noted that stakeholders did not seem highly alarmed by the fourth assault versus Noble in so many weeks.

“If we use Noble’s Credit Default Swap as gauge for the risk perceived by this group of stakeholders, they certainly did not show any heightened state of alarm overnight. Noble’s 20/06/20 CDS closed almost unchanged at a level of around 343. This compares to a recent high of 480 reached during the time of Iceberg’s third report,” he noted.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia