Forum Archive Index - January 2004

[robin benson <rob@hammerheadmedia.co.uk>]

For those interested in AMP, while doing some research on another 
topic, I came by some views in the Independent on this topic.

Chalkie calculates the cost of a slimmed-down AMP share
http://www.theindependent.co.nz/chalkie.html

Robin

On 12 Jan 2004, at 05:50, Karyn W wrote:

> It depends on whether you take a long term view of things or not I 
> guess.  Remember Australia doesnt have ACC so insurance is mandatory 
> here, for everything!  Also we have compulsory superannuation 
> contributions to make (now 9% of salary).
>
> So it's two main areas of business have excellent profit/growth 
> prospects - the insurance market in australia is in pretty good shape 
> now that HIH is no longer around to drive premiums down (there has 
> been double and triple digit increases in insurance premiums since!); 
> and this years increase in the rate of compulsory superannuation 
> contributions means even more money is now flowing into super fund 
> management.  AMP simply by default will pick up a share of that, 
> thereby inflating their management fees.  Property is currently 
> providing terrible returns, equities will get a helping hand as 
> investors switch.  Since the big 4 banks see funds management as their 
> profit/growth prospects of the future (hence potential takeover by 
> NAB) there is a definate opportunity for the share price to improve 
> long term.
>
> I dont think its brand has been harmed too much as AMP has done a good 
> job of blaming the overseas business (HHG) for its downfall, and its 
> problems related to its own management not mismangement of customer 
> funds.
>
> However, I think most people are hanging on for the expected NAB 
> takeover bid, or until they get a clearer picture of what AMP's 
> financials are like without HHG.  Most brokers have a HOLD 
> recommendation on it.
> Karyn


----------------------------------------------------------------------------
To remove yourself from this list, please use the form at
http://www.sharechat.co.nz/chat/forum/