chartists thoughts on current price, page-16

I have never seen a stock so under priced than QBE right now.

Yesterday, we were concerned with the exposure to the oil rig disaster, motor vehicle claims in UK, Euro exposure, low world growth causing delays in interest rates growth and high AUD compared to USD (mostly).

Today, oil rig exposure is confirmed up to $50mill if any as previously announced and allowed for, UK motor vehicle exposure is within provisions, Euro exposure is minimal and with all things being equal,when converted to AUD, is actually an improvement in reported income, world growth in europe & US is not great and will not add to QBE earnings growth but the depreciation of the AUD esp against the USD will add book value and additional income at levels under 0.90US which we are currently around 0.83US

QBE got in early and refinanced a lot of its debt before the europe crisis eventuated at a low rate of 2.5%. So, cheap money and good opportunities to buy in europe esp since the prudential- AIG deal has been shelved.

My bet is that on june 16, big frank will announce another acquisition and all this nonsense from broker houses will be forgotten. I would like to to see who has been buying QBE whilst the SP has been hovering in the $18-$19 range as they know there is plenty of upside in the near future.