Tuesday, March 25, 2014

*********** Noble Group: 1.10, Heading towards 1.125 resistance level.....

Noble has crept up above the 1.10 psychological level again after a slight profit taking…. Likely to test the critical 1.125 resistance level. Any break above this level can signal a new phase upwards towards the 1.20 and 1.30 level. Currently at top 5 Volume on the crossing of psychological 1.10. Might be something brewing, monitor closely to see if it breaks.
Stop loss at 1.07
StanChart – 25 March 2014
#Noble: StanChart upgraded Noble Group to OUTPERFORM with a higher TP of $1.28 (from $1.02), representing an upside of 19%. Taking a cue on the valuation of 1.4x P/B from Temasek’s offer for Olam, House TP for Noble equates to a 1.3x P/B.
StanChart expects sugar to underpin an earnings recovery or even a re-rating, given a combination of maturing assets and higher prices. In addition, should the current discussions relating to a sale of its agri business with COFCO lead to a deal, it may unlock value and shift sentiment.
CEO Yusuf Alireza continues to focus on positioning Noble towards its core supply-chain manager skills, with an asset-light structure. We view investments in X2 and Resource Generation as on-strategy and value- and reputation accretive. Moreover, management has a mantra that ROE is “the ultimate goal”, but “not with a weak investment grade”.

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