ying and yang, page-6

riceee007,

There are many holders on HC holding QBE and I dont think anyone is brushing the concern off about the dollar, most of the posts have been about this. But in my previous post, I explained that an investment in QBE is not about the short term, but the medium and long term. I have been in this game for many years and I can tell you my greatest gains have come off the back of QBE. I was able to upgrade to a better house, bought a brand new car, all before I was 30.

So my question to you is this:
Have you stopped to think that QBE's share price has been factored in with a rising dollar? It is on a PE of 11 and the banks, BHP, WES are on 17, if QBE was on that sort of PE, we'd all be looking at a share price of $33+.
Have you factored in the rising interest rates in Australia? QBE has the majority of its money on the short term market.
Did you realise that the Hurricane season has been benign in the US where a large portion of their "possible liablity" is?
How about the bolt-on acquisitions Frank and the crew would be feverishly working on with the dollar this high?
What about the across the board rate rises of 4%?
What about the purchase of the Elders insurance division and the large stake they've taken?

As for the rising dollar, it make for good reading and the media love scare-mongering. The actually possibility of parity is 4%. It would have to jump a whole standard median.

I can't recommend to you what trading or investment strategy to take, but dont just look at one factor within a business, especially one that is outside the control of management.

Regards
P