AMP - AMP Limited

[Toyota Lexcen]

Couldn’t read article, but blackrock supposedly looking at AMp

Be interesting to see if gets bid up or flog parts off and shareholders get nothing

 

[So_Cynical]

Why we invested in AMP - Allan Gray is a very very successful contrarian fund manager, these guys have balls of steel.
~

 

[Knobby22]

Why we invested in AMP - Allan Gray is a very very successful contrarian fund manager, these guys have balls of steel.
~

Unconvincing. He looks to me as if he is trying to explain their mistake. Saying they are wrong 40% of the time was not exactly comforting.

The latest outflows are large.
In my opinion they have bought too early. They haven't understood properly the brand damage. I mean even ordinary people with little financial knowledge know AMP are a poor performer and will advise moving the money into something like an Industry fund.

Technically I am not skilled but where's the turnaround? What if there is a market downturn? In my view this is likely in the medium term and this will further affect returns and increase outflows.

I note Bell Potter has a sell and an expected price of $1.57 in 12 months time. I note more bad publicity is to occur with the lawsuits.

If they do turn it around it will be slow and painful and will occur over a number of years. It will probably involve rebranding the company.

So many easier companies to buy especially for us smaller investors.

 

[So_Cynical]

Unconvincing. He looks to me as if he is trying to explain their mistake. Saying they are wrong 40% of the time was not exactly comforting.

The latest outflows are large.
In my opinion they have bought too early. They haven't understood properly the brand damage. I mean even ordinary people with little financial knowledge know AMP are a poor performer and will advise moving the money into something like an Industry fund.

When was the last time you heard a fund manger say they are wrong 40% of the time? its just so honest its confronting, its what you dont want to hear but as a long time
investor and market watcher you know its true - i cant help thinking that a contrarian fund manger just kind of has to buy the biggest contrarian play in the market, its like
an energy fund manager has to buy Woodside.

Anyway interesting that Allan Gray did jump in a little early (isn't hindsight wonderful) and started buying AMP at around the 3.50 mark in Sept 18 and have just kept on
adding to their position...its what they do, average in and capture the bottom.
~

~
https://www.allangray.com.au/b/swimming-against-the-tide-why-we-invest-in-amp/

 

[Knobby22]

......started buying AMP at around the 3.50 mark in Sept 18 and have just kept on
adding to their position...its what they do, average in and capture the bottom.
~
View attachment 94378
~
https://www.allangray.com.au/b/swimming-against-the-tide-why-we-invest-in-amp/

I think they have it wrong. Not fully understanding the disaster.
Let's hope for their sake they are capturing the bottom from now.

In their defence they want a sizable holding and don't want to miss out. We as small investors don't have that constraint.

 

[Toyota Lexcen]

Great posts knobby.

What’s going to be the best result for shareholders?

I think it needs to be taken over, AMP as a brand is finished. Its happened to lots of brands.

 

[Knobby22]

Thanks for the compliment.
They could rebadge Toyota, with some big advertising campaign.
It will bottom at some price but I still think minimum 6 months and could be 12.

 

[greggles]

It will bottom at some price but I still think minimum 6 months and could be 12.

Not today, that's for sure.

AMP is down another 14% to $1.85 after the company reported that the sale of AMP Life (the Australian and New Zealand wealth protection and mature businesses) to Resolution Life is highly unlikely to proceed on the current terms due to the challenges in meeting the condition precedent for Reserve Bank of New Zealand approval.

Management also said that an interim dividend will not be paid for 1H 19 due to the uncertainty around the AMP Life transaction.

Things going from bad to worse for AMP. The bottom looks to be a while off yet.

 

[sptrawler]

Couldn’t read article, but blackrock supposedly looking at AMp

Be interesting to see if gets bid up or flog parts off and shareholders get nothing

That is the worrying part for shareholders, like me.

 

[SirRumpole]

That is the worrying part for shareholders, like me.

And me.

 

[sptrawler]

I guess David Murray and his reputation, is all that's between us and a cliff.

 

[Junior]

The $$$ amount of remediation still to be paid out to customers, in their Wealth Division is a real concern, in my view.

 

[Garpal Gumnut]

Not today, that's for sure.

AMP is down another 14% to $1.85 after the company reported that the sale of AMP Life (the Australian and New Zealand wealth protection and mature businesses) to Resolution Life is highly unlikely to proceed on the current terms due to the challenges in meeting the condition precedent for Reserve Bank of New Zealand approval.

Management also said that an interim dividend will not be paid for 1H 19 due to the uncertainty around the AMP Life transaction.

Things going from bad to worse for AMP. The bottom looks to be a while off yet.

It's not the bottom I'd be worried about.

It looks completely f....d.

gg

 

[Garpal Gumnut]

My post above may ignore the fact that AMP would have some value at a lower price as a takeover prospect.

gg

 

[sptrawler]

My post above may ignore the fact that AMP would have some value at a lower price as a takeover prospect.

gg

Before your recent posts GG, I thought you were a glass half full, sort of guy.

 

[Garpal Gumnut]

Before your recent posts GG, I thought you were a glass half full, sort of guy.

Guilty as charged mate.

I posted original post after getting up a 10 yr chart.

We used always buy AMP at $4 and sell under $8. Up and down like a bride's nightie.

All very gentlemanly and couth.No suffering. No recrimination.

We are in unknown territory.

gg

 

[qldfrog]

Used to do similar with STO around the $11 mark..can not do this anymore..just to show us that blue chips can fade quickly

 

[Junior]

I think there's a good chance that AMP, as a brand will cease to exist at some point. AMP Capital is a strong part of the business, and could be a great takeover target for another fund manager.

The financial planning division could end up being near worthless, or certainly a lot smaller with less adviser/practices on the books.

Life Insurance will be bought out, whether by Resolution Life or another group.

After that.....there isn't a lot left. AMP Bank is relatively small. Their platforms & super product division will likely also shrink.

 

[Smurf1976]

I think there's a good chance that AMP, as a brand will cease to exist at some point.

Agreed - it's not like Toyota or Apple where the brand has some value and even if they wanted to change the name, it would work on the basis of "brand x is the new name for Toyota" sort of marketing.

In AMP's case though, the name is a liability these days not an asset. It's not like Shell or any of the fast food chains where someone might pay to use the name under license issued subject to meeting the company's product standards etc. Rather, AMP is a name that you'd be hard pressed to have anyone use even if you gave it to them.

 

[So_Cynical]

The value of all Branding isn't what it used to be, the modern market can be very fickle.