QBE – QBE Insurance Group Limited

QBE Insurance Group Limited (ASX:QBE) announced their annual results today which were very poor.  However, the result was forewarned and it seems already priced in.  With the Federal Reserve not buying as many bonds, bond yields are starting to creep up.  This is good news for QBE who has been languishing amidst low bond yields which has created a head wind for a few years now.  Could the market be beginning to look 9 – 12 months ahead?

Today, we have bought back at $12.20 what we sold at $15.78 on 25 November.

26 February 11:50am
Sells 1/3rd at $12.83 (+63 cents or +5.1%). Average cost on remaining 2/3rds now $11.89.

3 March 3:50pm
Sells remainder at $12.72 (+83 cents or +7% on remaining 2/3rds). Why no more smiling QBE?

May look for new entry at lower prices.

11 March 3:50pm
Buys QBE again at $12.89. Updated chart showing nice little flag break and good probability of higher prices from here.

13 March 3:50pm
Sells QBE at $12.64 (-25 cents or -2%). QBE is indecisive but now I’m not so sure.

19 March 3:40pm
Buys QBE again, this time at $12.63. The initial premise for buying QBE with Bond yields creeping up is still in play.

20 March 11:00am
Sells 1/4 at $12.92 (+29 cents or +2.3%). QBE average on remaining 3/4 now $12.53.

26 March 2:28pm
Sells remainder at $12.84 (+31 cents or +2.4%). It been rejected each day for a week around the $12.90 to $13.00 area.

This article is published by Dean Mico.

Disclosure: The Edge Fund has taken what we consider a medium term trading position in QBE Insurance Group Limited.

The information provided in this article is intended for general use only. The article is intended to provide educational information only. Please be aware that investing involves the risk of capital loss. The information presented does not take into account the investment objectives, financial situation and advisory needs of any particular person, nor does the information provided constitute investment advice. Under no circumstances should investments be based solely on the information herein.

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