http://www.wsj.com/articles/noble-groups-drawbridge-down-shorts-cross-moat-overheard-1438285613
Noble Group’s Drawbridge Down; Shorts Cross Moat — Overheard
July 30, 2015 3:46 p.m. ET
With Noble Group’s defenses down, the shorts stormed the castle.
Shares of Noble, the embattled Asian commodities trader, plunged 12% Thursday to a 6½-year low and drew a “trade with caution” warning from the Singapore stock exchange. Noble’s stock has taken a beating in the past few months, as questions have been raised over the sustainability of the company’s profits. Noble has denied accusations about how it accounts for profits, and has also pledged greater transparency. But those moves haven’t prevented investors from increasingly betting against the shares. Noble’s shares on loan, a measure of short interest, have risen above 9%, according to Markit. To fight that pressure, Noble has countered by aggressively buying back its own stock. That may have limited the damage over the past month or so. But under Singapore Stock Exchange rules, Noble can’t buy back stock in the two weeks leading up to its earnings announcement, which is scheduled for Aug 13. That no-trading “blackout” period started Thursday. It could be a long two weeks for Noble’s shares. Continue reading →
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