Tapped SGD 3,000 in cash and some of my unused dividends to buy 3 lots of Noble Group at SGD 1.21. I think the stock still has some legs despite its precipitous decline in stock price after announcing its third quarter results.
My investment thesis is simple: Noble is a good stock with a good business model but has management succession issues. I strong believe that the stock is oversold and that the market has over reacted on its first quarterly loss in a decade.
That said, the guy on the right will have to find the right guy to take over the commodities giant. After hiding in the background for two year, Richard Elman appeared to the press saying he was "unhappy". At the moment, they are looking at getting an ex-Goldman Sachs guy to takeover the position. I would think such a move be extremely short sighted.
I will wait at least three quarters if its results do not improve before selling off. This is probably my first opportunistic buy with almost minimal research. That said, the total capital invested rises SGD 28,000.
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