As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Saturday, 4 June 2016

Noble : 1 to 1 Right Issue @ $0.11

In the announcement, Noble proposed a fully underwritten rights issue with net proceeds of about US$500 million.

The rights issue will comprise one rights share for every one Noble share, issued at S$0.11 apiece. This marks a 63 per cent discount to the closing stock price of S$0.30 on SGX on Thursday (the last trading day before the rights issue announcement), and a 46 per cent discount to the theoretical ex-rights price of S$0.205.

Mr Elman has given an irrevocable undertaking to procure subscriptions for 625.5 million rights shares (representing 9.6 per cent of the maximum number of shares to be issued), though this is less than his full entitlement through Noble Holdings Ltd.

China Investment Corporation (CIC), Noble's other key shareholder, has given a similar undertaking for 630.6 million rights shares (representing 9.6 per cent) for which it is entitled. The remainder of the rights issue has been underwritten by a consortium of banks comprising HSBC, Morgan Stanley Asia, DBS Bank, Société Générale and ING.


CW8888's Thought on this right issue

In investing over SHORT-TERM trading and LONG-TERM (multi-years) investing, our experience in the stock market is relative.

Our emotional pain, joy and unresponsiveness to stock price volatility is relative too.

What I learn from many years of fishing. Not all poisons kill!

Some see it half empty while others see it half-full.

Some feel so painful and can't bear it anymore while others still feel okay!

Their History behind every stocks they have "punt", trade or invest will tell a different story! What you see is not what you think! So be careful on following others!

The rights issue will comprise one rights share for every one Noble share, issued at S$0.11 apiece. To Uncle8888, just @ $0.11 apiece is like taking some feathers off his Pillow stock to dry in the Sun and these few feathers taken off may make it a better Pillow some years later.

The Past is not the Present. The Present is not the Future.

Portfolio management, cash management, and risk control are what we can do as retail investors. The rest of it leaves it to Mr. Market to fight it out!

11 comments:

  1. Those who are holding Noble bought at higher price.

    Keep cool and do your Maths before angrily and emotionally get rid of your Noble on Monday!

    Take note:

    This marks a 63 per cent discount to the closing stock price of S$0.30 on SGX on Thursday (the last trading day before the rights issue announcement), and a 46 per cent discount to the theoretical ex-rights price of S$0.205.



    :-)

    ReplyDelete
  2. Noble shareholders have probably given up. Value diminished after these years. Still pump more money into the shares? Not for the weak heart but good for the strong heart.

    ReplyDelete
    Replies
    1. Many expensive and over-valued heads should have been rolled by now. Those who are still around can make it to the future as much smaller and less complex entity. That is how corporations can survive for a long time if they don't go bankrupt.

      Delete
  3. Probably can invest in Noble after weak holders sold their shares and then sell Noble when XR?

    ReplyDelete
  4. Hugely discounted (63%) 1 for 1 Right Issue to Raise US$500m to meet the obligation of US$2B liquidity for the next 12 months only. In summary, pay up their debt due.

    Would the coy able to turn around???

    ReplyDelete
    Replies
    1. Should together with asset sales which will take time. Think this right issue is for immediate cash to put off some urgent fire to buy more time.

      Delete
    2. IMO, this is not a fallen angel play.

      This is a sinking ship.

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    3. Short-term trading and long-term investing is still a Game of Strategies with strict portfolio mgmt, cash management, risk control. Making money from the stock market and then most of time keeping them safe in FDs to earn low interests as war chest.

      No worry! There are seasons in the Sun. Oldies will know the song.


      Posted on Thursday, 24 September 2009 and that was more than 6 years ago. Read? Noble and Olam

      To make money in the stock market over decades and still surviving; we must know when to go in big and then out with large profits and then back JUST TO NIMBLE or be completely out and don't look back!

      Same stocks. Different experience. Different strategies. Different outcome and ending.

      No one can predict the Future.

      The Past is not the Present. The Present is not the Future.

      What we can control now is our cash management and portfolio mgmt. It is In more or Out more or Status quo.

      In investing, it is all about me and me alone. Me and My money. :-)


      BTW, what did newbies learn from here?



      Delete
    4. Small premiums to stay on the game!

      Delete

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