Gotta give props where it's deserved, well done for at least putting out there your theory on why think it'll drop to $2.50 - respect! Lots of loonies pull figures out of their backside with absolutely no rationale whatsoever, so at least you're not one of them lol.
HOWEVER, I do not agree with a lot of what you said above. It may be factual, no argument there, but the point I'm making is whether the current SP represents potentially a good opportunity for those willing to hold medium/long term based on "current fundamentals".
You state they haven't learnt their lesson.....what I see if they've just replaced their CEO who some blame for the last few years of "mis-management".....I see this is a positive and every chance he will want to make a statement and turn the ship around!
You state their investments are poor choices in the current economic climate......What I see happenening are interest rates rising in the US which I believe will then be followed by others thereafter in the next 5 years......How will their investments look then?
You state they are exiting businesses on the cheap......I see them exited businesses which are burning cash and underperforming bringing the whole group down - nothing wrong with that, remember they are still highly profitable even without this.
You haven't mentioned a weakening AUD.....arguably its got a fair bit to go as the US economy keeps picking up - majority of income earned in USD. What will earnings per share factor be with this event.
Ohhh and whilst you're on the topic of books, I'll raise you one - go and buy Peter Thornhill's "Motivated Money" as it'll change the way you look at the market.....again!
Happy Investing
QBE Price at posting:
$10.41 Sentiment: Buy Disclosure: Not Held
(20min delay)