Forum Archive Index - February 2001

["Mike Hudson" <mikehudson@clear.net.nz>]

Joanne, this doesn't tell you why the price is falling but it is one view on AXA

 

AXA Asia Pacific Holdings - Money & Honey - Analyst Briefing… We retain our Hold recommendation for AXA Asia Pacific (AXA AP). Notwithstanding our valuation for the stock of $3.15, the company by its own admission is in the early stages of regeneration, which carries inherent execution risk. We prefer AMP as our preferred life exposure at this stage. Yesterday’s analyst briefing showed that CEO Les Owen has awoken a company that has been asleep during the 1990’s… The Australia/NZ business is a clear turnaround story however the results will take time to deliver and the improvement will not be linear. He reiterated his "K5" goals for the group which encompasses a project out to 2003. In addition competitors such as AMP, NAB/MLC and CBA/Colonial will continue to move the goalposts… A lot has been highlighted about the adverse market dynamics facing AXA China Region (ACR) in Hong Kong. Monday’s briefing provided an opportunity for ACR management to outline their action plans. In particular ACR has now launched its long awaited unit-linked product to be marketed under the "Honey" brandname… The briefing also covered issues such as capital management and expansion of the group outside of Australasia and Hong Kong. A$2.60 – Hold (Source: Nick Caley, Analyst, ABN AMRO AU)

Cheers

Mike H