Where are all the QBE fanboys?, page-7

This is my take on QBE.

The fan boys predicted $20 by Christmas because the US was going to increase rates and the A$ was going to drop. Then there was the hope that because QBE were moving investment towards equity rather than bonds, the increase in equities would overcome the lack of interest rate. Basically, so long as the sun came up, the price was going to rise.

Rates have not increased, but the dollar has dropped some (below QBE's forecast of 75c), but still the share price hasn't risen. Now the problem is lowering forecast for global growth and delay in the increase in rates. Problem is that if rates go up, equities go down.

My take remains that interest rates and dollar fluctuation are beyond QBE's control and it's share price will not increase above about $15.50 regardless until QBE has provided to the market all of the good things they appear to have done has made the company robust and it is well managed. The next report will start the re-rating, but I think it will take another 12 to 18 months for full effect of changes to be seen in share price.