AMP - AMP Limited

[prawn_86]

AMP looking to raise $00 mill through SPP.

My question is why?

Price not yet finalised, but im thinking i might take a small profit on this one and look to enter once the placement is over, as they generally halt momentum of stocks from my experience.

 

[Sean K]

My question is why?

Yeah beats me Prawn, hardly an explanation in the ann either..

AMP is making the placement to enhance its capital position and increase business flexibility through the ongoing market turbulence.

enhance and be flexible?

Maybe they should just go to the gym.....


Looks like you might get a cheap allocation though.

 

[bloomy88]

I hold AMP stocks and saw they want to raise the $400 million in institutional placement.
What does that mean for their shareholders?
Do we get the first option to buy more shares?
Is this a good or bad sign for the company?

Any thoughts would be appreciated

Cheers

 

[Sean K]

I hold AMP stocks and saw they want to raise the $400 million in institutional placement.
What does that mean for their shareholders?
Do we get the first option to buy more shares?
Is this a good or bad sign for the company?

Any thoughts would be appreciated

Cheers

Maybe you should read the announcement bloomy?



AMP also plans to offer Australian and New Zealand retail shareholders the opportunity to subscribe for up to A$5,000 of AMP shares through a Share Purchase Plan (SPP). The SPP price will be the lower of the institutional placement price or a 2.5 per cent discount to the average market price (volume weighted average price) during a period to be determined. Other details of the SPP are currently being finalised. A maximum of $100 million will be raised under this plan.

 

[prawn_86]

Price not yet finalised, but im thinking i might take a small profit on this one and look to enter once the placement is over, as they generally halt momentum of stocks from my experience.

Well there goes that idea.

Trading halt now. I guess its to do with the placement to the instos.

I do have faith in AMP, its just the prices tend to stagnate when a AMP is happening so i could put my money to better use elsewhere is my thinking.

 

[prawn_86]

Down 4% on open. Saw that coming.

I wouldnt be surprised if it went down to about $5.39 which is the issue price to the insto's. They raised $450mill, so lets hope they put it to good use now. Perhaps a capital return next year

 

[brettc4]

We ended the day at $5.89, so only a 9 cent drop.

Can someone please expand my education?
They have placed $450m with institutions, and possible anoter $100m with a SPP.
Shares outstanding in Dec 2007 was 1,849,000,000. This $550m will potentially add 102,000,000 shares @ $5.39

So immediately, they have a profit, but does this dilution of the share holding really affect me? It is possible that they will reduce the dividend due to these new shares? Does it affect me in any other way?

Cheers

 

[prawn_86]

Brett, placements are complicated, with good arguements both for and against.

The positive factors are:
They now have more cash and if used wisely can increase future earnings.

Negative:
In % terms you now own less of the company (dilution), even if you take up your full amount in the placement, you will still own less due to instos getting some.

 

[ROE]

hmm I dont like it
I got AMP shares and I don't like any placement at all ..
I prefer buy back.

The day I buy any stock I want them to buy back 10% outstanding shares

 

[drsmith]

The directors statement in relation to the final 2008 dividend in the third Q report is not the most positive I have ever read.


Their caution however may be due purely to the current economic environment and lingering memories of the near death experience back in 2003.

 

[Timestar]

AMP - Very high p/e ratio

A big concern with falling unit vales and subsequent lower fees etc. Seems more like a $4.10 - 4.25 stock. Not buying yet.

 

[prawn_86]

Broke down below support at $5 today.

I wonder how much lower its going...? And do i sell now hoping to buy at a lower price later? Oh the decisons.......

 

[drsmith]

This is very much a case where I'd like to have the day back when they were over $10.

Oh the pain! the pain!

 

[prawn_86]

This is very much a case where I'd like to have the day back when they were over $10.

Oh the pain! the pain!

I only bought at about 5.40, so do i cop a 10% loss and wait for it to fall further, or do i stick to my long term hold for yeild, which was the original purchase reason?

Im thinking the latter. If i can get 6% yeild (allowing for div cut) thats more than any bank is giving at the moment

 

[prawn_86]

Getting absolutely smashed today for no apparent reason. Down about 7%.

Perhaps all those holders have decided the yeild is not attractive enough, a week after the news came out...

 

[Sean K]

This looks promising.

Breaking through that $5.50 ish zone will be a good long term signal perhaps.

A sort of an inverse H&S in there as well.

 

[Uncle Festivus]

In the good ol days this would be prime takeover material?

 

[Sean K]

In the good ol days this would be prime takeover material?

The last time I heard of any M&A with this one was a potential NAB hook up. Was just speculation in a newspaper though.

 

[Garpal Gumnut]

I bought some AMP last week and may do so again tomorrow.

Something is up.

That last bar looks like insiders buying up ahead of an announcement.

gg

 

[Garpal Gumnut]

I just don't know what to make of today's price action. a few states I believe had holidays. The pattern is still bullish. I'm not a candlestick person but that last bar could be indecision. I just don't know. Any ideas?


gg