Is the Noble versus Iceberg drama finally over?

The sell-down has run its course.

Noble’s painful Iceberg chapter may finally be drawing to a close. After a series of hard-hitting reports wiped almost $1 billion off Noble’s market capitalisation, a report by DBS noted that the sell-down may finally be over for the beleaguered commodities trader.

DBS stated the law of diminishing returns have clearly set in on Iceberg Research’s third research report against Noble Group.

“Recall that the first Iceberg report was released on 15 Feb and the reaction was a 13% drop in Noble Group’s shares in the subsequent two days. The second report was on 25 Feb and the reaction was a lesser 11% drop in the subsequent two days. The reaction to the third and final report was a 4.5% gain on 23 March. This indicates that the sell-down in relation to Iceberg’s claims has likely run its course,” noted the report.

“Technically, we see near-term support at $0.91 with upside to $0.965 and $1.02, the latter coincides with a major 23.6% upward retracement of the stock’s correction from a high of $1.48 back in Jan 2014. If the upward retracement extends further, look for further subsequent upside to the 38.2% upward retracement level of $1.08. Our fundamental TP for Noble Group is $1.12,” DBS added.