Shares of Singapore-listed commodity trader Noble Group tumbled in Friday afternoon trade after gadfly anonymous researcher Iceberg Research launched another negative report about the company.
In a WordPress post, Iceberg, which Noble has claimed is run by a disgruntled ex-employee who was fired for cause, wrote that the company’s recently announced efforts to find a strategic investor were essentially just Groundhog Day all over again.
The post, titled, “Noble Group: How many times can you fool the same people,” Iceberg posted a list of purported previous efforts to find a strategic investor.
Much of the post was a re-hashing of Iceberg’s previous complaints over how Noble values its commodity contracts and handles its accounting.
In a development that could also be compared with Groundhog Day, Singapore stock traders once again sold off Noble shares in a knee-jerk reaction to the latest report.
Noble shares plunged 20.37 percent by 4:05 p.m. HK/SIN to S$0.215 , following a more than 41 percent rise between Feb. 10 and its last close at S$0.270 on Thursday. The trading quickly made the stock the most active share on the exchange.
The stock’s recent rise was likely driven by a Reuters report last week, citing three sources familiar with the matter, that China’s state-owned Sinochem is in early talks with Noble Group to buy an equity stake in the embattled trader.
If a deal is reached, that would help Sinochem gain access to Noble’s global supply chain, Reuters reported.
Reuters, citing sources, said the talks have not been completed and there is no assurance that a deal will be finalized.
When contacted by CNBC, Noble declined to comment on the latest Iceberg report and referred to its February 14 filing to the Singapore Stock Exchange that it was engaged in talks regarding possible strategic investment in the company, but that no binding agreements had been reached.
Iceberg Research didn’t immediately return an emailed request for comment.
Iceberg’s reports have figuratively drifted into Noble’s ship for nearly two years.
The anonymously published WordPress blog began in February 2015, when Iceberg Research published a report alleging that the Singapore-listed trader’s accounting treatments were “unusual,” resulted in “fabricated” profit and “intentionally misleads credit agencies and investors.”
Noble has consistently and vehemently denied the allegations.
