Short-Term Investment: Noble Group

Sector: Commerce; Wholesale

Background Information
Noble Group Limited (SGX: NOBL) was incorporated in Bermuda in 1994. The Group manages the global supply chain of agricultural, industrial and energy products. Noble operates a diversified portfolio of raw materials from over 80 offices in more than 40 countries, originating product from low cost producing countries and delivering to high growth demand markets - its "pipeline" strategy. An experienced team of 10,000 employees serve more than 4,000 customers.

Leaders:

Chairman: David Eldon
-Non-executive Chairman of Hang Seng Bank Limited
-Director of HSBC Bank Australia Limited (formerly Hongkong Bank of Australia Limited)
-Director of the MTR Corporation
-Director of Swire Pacific Limited
-Deputy Chairman of The Hong Kong Jockey Club
-Chairman of the Hong Kong General Chamber of Commerce
-Chairman of the Dubai International Financial Centre Authority
-Holds a number of other Boards and Government appointments
-Co-chairman of the national competitiveness committee of President of South Korea Lee Myung-bak's Transition Committee


CEO: Richard Elman
-Founder and Chief Executive of Noble Group
-Built Noble Group from $100,000 into a $15 billion supply chain management business with offices in over 40 countries

Data (as of 2007-12-31):
Current Ratio: 1.631
Closing Price (as of 2009-03-12): $1.01
Debt to Equity Ratio: 1.642
Dividend Cover: 7.313
Dividend Per Share: 0.025 USD
Dividend Yield: 3.327%
Net Tangible Assets Per Share : 0.580 USD
Price Earnings Ratio: 7.294
Return On Equity: 16.658%
Return On Total Assets: 7.729%
Market Capitalization: $3.32829B
Net Profit: USD0.577B

Reasons to Buy:
a) RoE profiting
b) Leaders have good reputation and possess much experience in leading corporations and being in leadership and board roles in various major companies, hence being able to help company sign new contracts and take up various profitable projects
c) Manage to record a net profit despite of current economic turmoil
d) Monopolizes global supply chain of agricultural, industrial and energy products
e) RSI slightly below average currently = Undervaluation during current economic crisis = Possible huge profits if invested now

No of Shares Bought: 10000
Entry Price: $0.995
No Shares Shares Sold: 10000
Exit Price: $1.015
Profit: $130.64

Sources:
www.sgx.com
www.cimbinvest.com
Noble Group 2008-Q3 Annual Report

Done By:
Alvin Ong
Lee Zi Jian
Lester Mok
Irvin Ho