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Monday, 3 June 2013

Noble Group: 3 June 2013, Monday, 12.15am Singapore Time

Noble Group: 3 June 2013, Monday, 12.15am Singapore Time

Attached above are all the shorting points of Noble. 

Since last year, I have been extremely bearish of commodity stocks for the long term, contrary to commodity bulls such as Jim Roger's calls for secular commodity bull market. Instead, we will go into a secular commodities bear market. 

When such a Commodity Secular Bear Market comes, it comes as a very big deflationary wave and those commodity companies that are highly geared will run into trouble in the following years down the road, especially when the margins are eroded and their debt levels are high.

Break down in Noble Group at $0.998-$1.025 is to be expected, and when the break down comes, Noble Group will go for 2 targets:

1. 80 cents as Initial Guaranteed Target based on Price Structure.
2. 40 cents as Price Satisfaction Target based on Price Structure.

In summary, the further downside for commodity stocks such as Noble Group is high. 

COMMODITY STOCKS 
(OLAM, NOBLE GROUP, WILMAR):
GO SHORT.

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