Energy & Mining

Questions Mounting For Noble Corporation Ordinary Shares (UK)(NYSE:NE)

Noble Corporation Ordinary Shares (UK)(NYSE:NE)

Noble Corporation Ordinary Shares (UK)(NYSE:NE)

Noble Corporation Ordinary Shares (UK)(NYSE:NE) shares were down slightly, to $3.76, in after-hour trading as news that Royal Dutch Shell was terminating a jack-up contract almost a year early. However there was some good news. Royal Dutch Shell awarded Noble some short-term drillship work. Investors were also taking valuations into account after Citigroup downgraded NE shares from a “Buy” to a “Neutral” with the target price getting slashed from $11 to $4.70.

There is little doubt that the Citigroup downgrade will raise some eyebrows on the street as Noble Corporation Ordinary Shares (UK)(NYSE:NE) received no less than nine upgrades from analysts since the beginning of 2017. So far, the upgrades have not been warranted. YTD shares of Noble Corporation Ordinary Shares (UK)(NYSE:NE) are down over 36% and down over 57% for the past year. This has been good news for the short-sellers. Short-sellers hold shares short in an amount that represent 24.5% of the stock’s total float. At $3.76, NE shares are threatening to challenge their existing 52-week low of $3.65. Interested parties should keep a close eye on any news.

Noble Corporation Ordinary Shares (UK)(NYSE:NE) management style has guided it from a one rig operation in 1921 into one of the largest offshore drilling contractors. Noble’s growth is due to a series of strategic acquisitions of offshore drilling assets. These acquisitions follow Noble’s goals – to gain a strong position in foreign drilling markets, to expand marine drilling operations and to move into new markets and segments of the industry.

I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.

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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.

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