thumbs-down-1AS PROMISED, Iceberg offered the market their second three reports on Noble released this morning.

The timing of this report, while predictable due to its 'maximum impact' effect on the market - due to attention on Noble because of their scheduled earnings released today – has a strong sense of activism in its intent.

Again, this report made several comparisons between Noble's accounting procedures with that of the failed Enron.

Questions largely centred on the practice of how they 'mark-to market'  and account for the many trading positions in commodities that they have interests in, and on how the valuations on book may not truly reflect the true worth of these holdings. 

Furthermore, because Noble is an "asset-light" trader, the leveraged effect of this move may be even more significant than previously thought.

This report is as sensational – even ominous – as the first, stating that "It is now too late for Noble. There will be no miraculous recovery. The market will progressively realize the company's fair values are largely fabricated".

Although Noble's management have refuted iceberg's claims in the first report, they have remained rather quiet through this episode.

Perhaps because of the 'black-out' before they announce numbers later today. In any case, this latest report will offer analysts a whole host of questions for meetings after today's earnings report goes out.

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