4 goblin, page-5

re: why takeitover when it will fall apart? Hi guys,

might be a shade premature to be waving goodbye to the AMP agent netwrok just yet. To do so would be to not understand just what some of these agents have at stake.

Aside from holding AMP shares, the big attachment that AMP agents have to AMP itself is a structure called buyer of last resort.

It is via this facility that the Agency network is able to assign a value to the business - a business it should be added that they are not free to simply sell to any Joe Blow or Banker.

There is a complex formulae which ascribes value to their total client book where the agent wishes to sell to another AMP agent or new agent and in the event that no buyer can be found AMP itself will buy back the business effectivelymaking the goodwill that an agent has built over many years work into a tangible asset.

In a worst case scenario the agent could just walk - but the best ones would be walking from businesses with values in the millions. Would you?

Of course the core issue for AMP with its agency network is the unparrellelled distribution strength that the banks have so far been unable to buy elsewhere and for the agents themselves it is confidence in the company. It was towards restoring this that the gesture of telling Paul Batechlor to get stuffed re his payout wa aimed. The Agents apparently hated his guts and would not have forgiven Mohl rewarding him.

I'm prepared to call AMP a buy with the proviso of $4.80 as a stoploss.