Sun will likely outpoerform BOQ because insurers are the last...

Sun will likely outpoerform BOQ because insurers are the last financials subsector on low pes.

If Sun was valued at same PE ratio as BOQ it would be a $17 stock.

Now the preferred industrial sectors are all fully valued, insurance will likely outperform as the market 'fills in the holes' where cheaper stocks live.

You also have to bear in mind BOQ's stock price recently fell because it issued a large tranche of shares to buy the Investec private banking business. While that may add earnigns later - at this stage it is just straight dilution, and so stock price lowered accordingly.

Yesterday;s selling in BOQ im confident was just from people who dont understand that was why the SP is down from $13, and so they sold BOQ as an EOFY loss.

BOQ is still a very nice proposition - I notionally think it should go $13.50 on FY15 PE basis - but in fact we're also back to the point in cycle where consolidation and offshore new entrants get talked about as making takeovers for the regional banks - thats what took BOQ p/b ration fro 1.3 to 2x last full cycle.

If that occurs again than i think BOQ can go $14+ in fy15, assuming the broader market remains intact.