I did some time today to revisit one of the articles I written in the past.

It is about Noble Group, a commodities trading / supply chain company that went on a price riot in the past.

What needs to be put into perspective was the role of bonus share issues in the past and dividend returns. If we look at Noble Group from a total return perspective, the returns were very good.

Noble Group is still traded today, but its characteristics is…. a little bit different.

Back then I made some conclusions:

  1. bonus shares are just a form of financial engineering, a way for the company to say keep the profits earned retained with us. It doesn’t do much, but it is a form of signalling. Good companies tend to issue more bonus shares then rights issues
  2. what is important is the overall profits and cash flow. If …