Stock Call: Monitor Noble Grp (N21) and news on the sale of Gloucester Coal!

On Thursday, Noble Grp (N21) managed to close flat to mark a white candle with moderate shadow at the support level of $3. Noble always stand out among the locally listed resource firms as the second largest commodity entity in terms of market capitalization and the most diverse in its business. Thus I would recommend keeping a lookout for this counter in next week and go for a good entry price whenever possible (Should be $3 or below)

Technical Data

RSI: Oversold

Bollinger: Seesawing with wide range at high VOL.

Resistance: $3.45

Immediate Support: $3

Major Support: $2.66

Fundamental Data

PE: 15.1

EPS: US $0.145

Yield: 1.6

Price to book: 2.83

MY TACTIC: SELLING pressure has been high for Noble for the past few days therefore I do not recommend to buy on MON but do put this counter into your watch list and monitor on the news for the sale of Gloucester Coal. DO NOT enter if the VOL remains HIGH.

 

Dow Jones news on1st Apr

 

Noble Group (N21.SG) off 0.7% at S$3.04, extending yesterday's 2.5% fall, on lingering concerns over sale of company's major stake in Gloucester Coal (GCL.AU) to Macarthur Coal (MCC.AU). Despite losing 10.8% over two weeks, following recent disposal of shares by vice-chairman Harry Banga, stock still yet to regain buying interest, with U.S. energy firm Peabody Energy's (BTU) takeover offer for Macarthur leaving investors guessing whether Gloucester sale will go through. If sale successful, Noble will end up with 24% stake in Macarthur, giving it greater exposure to Australia's coal market. Clarity may come when Macarthur investors vote on Gloucester purchase from Noble at shareholders meeting on April 12, and when Noble shareholders vote on sale at meeting on April 19. Some analysts expect more developments from Peabody, Noble in meantime. "We think that there will be at least two revised term sheets from both Peabody and Noble," says Daiwa, which has Buy call with S$3.86 target; doesn't rule out Noble's existing arrangement with Macarthur "failing altogether." Immediate support at S$3.00, last breached Feb. 19.