Buy, hold, sell: Five stocks battling for blue chip status
Selby Allies: It trades at a P/E of 17 times, and has a market cap of $17.4 billion. Hugh, it’s up to you. Is it buy, hold or sell? Hugh Dive (BUY): I don’t agree with Hugh. I think this is a purchase. Raising interest rates with a tough premium cycle. This is very positive. They have actually seen some return on their investment stream for the first time in 10 years. Also, business has been much simplified. We didn’t expect anything bad from QBE. No Argentine workers’ compensation, Ecuador’s crop insurance or Columbia’s third-party motorcycles, which have been defrauding investors for years. This is a much simpler story. I think this is a solid buy. And you also have the falling Aussie dollar, which is a big beneficiary for QBE, unlike domestic insurers. Selby Allies: Next, we have South32. Recently bought a 45 percent stake in a Chilean copper mine. Hugh, stay with you. Is it buy, hold or sell? Hugh Dive (SELL) : Sell. Catch the falling knife. Underlying an unfriendly