"Dont just look at one factor within a business, especially one that is outside the control of management."
For a short-term entry, surely this is important?
I am thinking, strongly, about buying $3k worth on margin... not a particularly substantial amount... but, with the potential to increase by around 50% within 2 years, it's not bad.
Int rates, yes. hurricane season, no. Bolt-on, to some extent, yes. Int rates, yes. Elders acquisition, yes.
At 95c, which is now less than 2 cents away (as opposed to the >3 cents it was).... I can see this affecting QBE.
I guess my MAIN question is... is that thought accurate?
As in: I say a rising AUD is bad for QBE. You guys say, it doesn't matter if it's bad for QBE, as, long-term its a great company.
I agree that it's a great company, thats why I want to invest in it (I think)... BUT, can someone please help me out with my actual questions?
If the AUD hits $1, will QBE SP drop dramatically? What if it hits 95c? If it hits $1.15 (unlikely, but)... will QBE even be profitable? (I think it will, a mate seems to think it won't... he's done more research than me).
Does HC think QBE will go down in the short term, regardless of fundamentals, largely due to a rising AUD? If not, why not?
QBE Price at posting:
$22.80 Sentiment: None Disclosure: Not Held
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