| Investors sell after departure of Noble executive |
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| Thursday, 17 November 2011 14:47 |
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Source: Wall Street Journal
The departure of Chief Executive Ricardo Leiman from Noble Group sent its stock for a nose dive. Noble shares plunged 26 percent last week with analysts citing the weak quarterly earnings and management shenanigans in just about equal measure. Noble has mining investments in Mongolia with a focus on coking coal exploration.
Leiman left Noble, citing personal reasons, after admitting his disappointment with a USD 17 million loss in the third quarter on a call with analysts and media. The firm's 71-year-old chairman and founded, Richard Elman, is temporarily in charge while a replacement is sought.
The company, which has a market capitalization of about USD 8 billion, said swings in cotton prices and other market volatility was to blame for the loss. However, revenue was up 40 percent in the third quarter and it increased its volume of trade in all business segments. The global economy could create added pressures in the immediate future, but Asia's rising demand for commodities could alleviate some of that stress over the longer term.
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