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OPINION

Noble's missing commission

Noble's missing commission
October 16, 2012
Noble's missing commission
IC TIP: Buy at 180p

The news sent Noble's shares down 6 per cent to 180p, albeit on low trading volumes. However, this seems an overreaction considering that Noble's auction house, AH Baldwin, still holds the coins; the vendor may decide to reauction them into what is a buoyant market; and Baldwin can seek legal redress against the Qatari purchaser. There is every possibility that at least part, if not all, of the £2.2m will in time be recovered.

Moreover, Noble has revealed that the new financial year has started strongly, with a series of London auctions at Coinex. Baldwin's September auction set a new world record for an English or Australian coin when the company sold the George V 1920 Sydney mint Sovereign for £780,000. This was the star attraction of The Bentley Sovereign Collection and the third part of that collection will be auctioned in May, including the finest known example of a very rare 1819 London mint Sovereign.

Trading on a 2013 forward PE ratio of 10 and backed by a rock solid cash- rich balance sheet, any resolution of the Qatari purchase would be a major catalyst for a re-rating. So if you followed my advice to buy the shares at 167p ('A Noble Investment', 20 Sep 2012), I would use share price weakness as a buying opportunity.