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The only thing with that is that it was also a well managed company and the pick of the insurers while it has been dropping in price.
QBE - QBE Insurance Group
- Thread starter markrmau
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The only thing with that is that it was also a well managed company and the pick of the insurers while it has been dropping in price.
Julia
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Exactly. It's now worth about half what it was three years ago, yet all during this time it has been widely recommended as a core p/f stock.
It may be a well managed company but it sure as hell isn't reflected in the SP.
A bit of an exaggeration, I think.
QBE's SP three years ago was around $31. But the important issue for me isn't what's been but what might be.
Not one to buy yet, but certainly one to watch, IMO.
Julia
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Not much of an exaggeration at all. At the end of July/start August 3 years ago the SP went to $35. Today it's a few cents over $18. Near enough to half.
Maybe. But if you compare QBE with many other major industrials it hasn't performed nearly as well so I'd be interested to know why you think it would in the future?
I've held QBE in the past but it just wasn't showing the growth that was easily available from other stocks.
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Earnings downgrades and now a new 52 week low today. I hear so many people includes you guys here say QBE is a top stock to hold. Apart from a so-called well managed company why else is it a top stock to hold?
For me QBE has only gone backwards since I bought in around the $20 mark and it's dividends are terrible. Should I get out now or hold it longer? or buy more today to lower my draw even price and hope it kicks up?
I guess you guys cant tell me what to do here but where do you think QBE will go from here?
For me QBE has only gone backwards since I bought in around the $20 mark and it's dividends are terrible. Should I get out now or hold it longer? or buy more today to lower my draw even price and hope it kicks up?
I guess you guys cant tell me what to do here but where do you think QBE will go from here?
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Julia
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Something I've often also asked.
John, on what basis would it make sense to you to buy more on the averaging down process, and hope it picks up?
Do you really think hope is the appropriate emotion to attach to buying decisions?
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On the basis that the market seems to move for pretty much no reason most of the time. Therefore, there is a good chance QBE will push up a bit tomorrow and level out there for a while.
I remember MQG dive and surge $1-$2 a day for most of 2008-09.
I remember MQG dive and surge $1-$2 a day for most of 2008-09.
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With a 62 cent dividend payable 26 th august 2010 shouldnt the share price at least run up to near $18 in the next month . so it should regather lost ground from today . Wait a month and regather that 5.8 % from today .
Or am i wishfull thinking .
The main reason the share dropped was from there investment income not reaching past performances not from there insurance business they actually wrote 20 % more business , they just didnt get the returns on the money invested , with a few bad storms etc thrown in .
Or is it time to bail .
The company says its had a 20 per cent growth in premiums, and a 7 per cent increase in insurance profit to $US820 million, but that has been offset by heavy investment losses.
However, the company says it is likely to maintain its dividend at 62 cents per share.
It has also offered an upbeat medium term outlook, with the company expecting new acquisitions and initiatives this year to add around $US400 million of net profit after tax annually by 2013
http://www.abc.net.au/news/stories/2010/07/26/2964219.htm?section=business
Or am i wishfull thinking .
The main reason the share dropped was from there investment income not reaching past performances not from there insurance business they actually wrote 20 % more business , they just didnt get the returns on the money invested , with a few bad storms etc thrown in .
Or is it time to bail .
The company says its had a 20 per cent growth in premiums, and a 7 per cent increase in insurance profit to $US820 million, but that has been offset by heavy investment losses.
However, the company says it is likely to maintain its dividend at 62 cents per share.
It has also offered an upbeat medium term outlook, with the company expecting new acquisitions and initiatives this year to add around $US400 million of net profit after tax annually by 2013
http://www.abc.net.au/news/stories/2010/07/26/2964219.htm?section=business
skc
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Move for no reason? 40pc fall in profit seems a pretty good reason for the stock to fall from $25 to $17 in this calendar year.
Having said that, the down move might be closed to the end, and a bounce back might ensure over the next week or two.
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john, I am not an expert but I agree with Julia, don't go catching a falling knife, it's an act of emotion.
You can of course look at that juicy dividend, buy in for that and hold onto the shares for their "optimistic mid term" outlook, but don't buy them because they have fallen so much this year! I own them at the same $20 and thought they were a great buy then, a solid yield and really excellent margin on their written premiums. has that changed?
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Skc, sorry I meant that in regards to MQG last year. Well the Dividend is due Ex around the end of next month so now might be a good chance to buy in get the dividend and maybe a lil SP growth in the lead up.
Julia
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If you really think that, you're pretty much destined to lose money.
Why do you think it will push up tomorrow when it fell 5.5% today in contrast to the generally rising market?
Agree.
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I don't hold QBE but nearly bought on certain brokers and others recommendations. If this happened in the States then QBE would be open to Class A actions and some directors would be for the chop. Totally unsatisfactory, incompetance, in fact, a class of 14 year-olds could have done better.
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Well fundamentally it does. BHP has not announced anything today yet it was up to $40. Now only $39.86. For no reason.
Julia
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OK, John, I give up on trying to get you to think about why markets move.
I see QBE is down another 3% today. Not pushing up too well, huh?
I see QBE is down another 3% today. Not pushing up too well, huh?
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I'm with you on that subject Julia.
If the current price levels don't hold around the +$16 area we could be heading towards $14 for the next area.
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Where is the background commitment, if for any reason it is going to go up? And has that been depleted in recent days?
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