Noble Group Ltd’s (Noble) share price tumbled 6.5% due to significant fall in coal prices in Europe. However, the fall presents a good buying opportunity for longer term investors. It does not seems that a deep correction in coal prices would have a significant impact on Noble because coal accounts for only about 10% of the group’s revenue, which comprises of a diversified portfolio of products including agriculture, clean fuels, metals and iron ore, among others.

Despite the recent softening of commodity prices, many commodities are still trading near their record highs. With an impressive 281% YoY increase in 1Q08net profit to US$167.1m, it seems that Noble’s growth momentum will continue in 2Q08.