atans1

Noble: Two good reasons to buy?

In Accounting, Commodities, Uncategorized on 10/04/2015 at 7:13 am

A trading house requires lots of working capital (i.e. borrowed money). The short sellers by raising issues about “aggressive accounting” are trying to get its facilities cut.

Well

— S&P believes the company deserves its investment grade credit rating; though it would like to know more about the assumptions.

— Noble’s banks have juz renewed a US$2.2bn credit line.

So it’s up to Muddy Waters to make sure that the mud sticks to its allegation of “aggressive accounting”. .

But it’s not so easy because if the price falls substantially, the banks get scared and change their minds while S&P might get scared that its missing something. It could then say that share price fall affects the rating.

Not easy to make money in stock markets. ask Ho Ho Ho about StanChart, Merrill Lynch and Chesapeake.

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