NOBLE GROUP: Has appointed PriceWaterhouse Coopers to conduct an assurance review of its marked-to-market models, valuations, and governance framework.
The outcome of the report may or may not cause provisions to be made to the coming financial results. Share price would react, positively or negatively, based on the outcome.
Current share price (67 cents) is at the low, and how much lower can it goes is anybody's guess. If 4 cents dividend is maintained, the dividend yield is close to 6%. Is it time to invest for long term, or time to punt for short term?
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Prior to his retirement, Chan Kit Whye (left) worked more than 30 years as Regional Finance Director, Financial Controller and Manager in a multinational specialty chemical business. He has played an active role in CPA (Australia) Singapore Branch, taking up positions in its Continuing Professional Development and Social Committees. Kit Whye is a Fellow of CPA Australia, CA of Institute of Singapore Chartered Accountants and CA of the Malaysian Institute of Accountants. He holds a BBus(Transport) Degree from RMIT, MAcc Degree from Charles Sturt University and MBA from Durham Business School.
Comments
It would be wiser to wait and see what the highlights of the PwC report are, especially on whether more provisions are needed on top of those that were recently made and announced. Although based on ROI the counter may look appetizing for a mid to long term investment, the critical area that both Muddy Waters and Iceberg Research have highlighted (regarding the "credibility" of the group's valuation model in its MTM exercise) is now the subject of PwC's review, and this should take overriding importance before any investment decision is made, if due diligence is anything to go by. It must be borne in mind that this review by an independent party was not called by the management out of the blue and on its own accord, but rather, after much pressure by the Monetary Authority of Singapore.