rembrandt comments belowHmmm ... those holding FPO's are indeed...

rembrandt comments below


Hmmm ... those holding FPO's are indeed brave ...

A little history and a look at the chart shows the price plummet to below $5.00 on news that UK operation was considered 'worthless' by analysts ...

Fancy footwork by AMP has convinced analysts that UK arm (now trading as HHG) is worth and will float at about AUD1.45 ...

Speculation is rife that AMP holders will dump their HHG shares quickly after demerger which will no doubt tank the price in any event ...

The really frightening bit for holders comes from a snippet in todays SMH article which I posted earlier under NAB- nab runs dead on bid for amp ... and I quote:

"The belatedly filed accounts of AMP (UK) - now HHG - show net assets on the balance sheet of £155 million ($365 million), but included among the assets is £288 million of goodwill or intangible assets."

This equates to a negative tangible assets of $310million

"On this basis, HHG has negative net tangible assets after the substantial writedowns in the past year."

Negative tangible assets ... oh really !!!

"The accounts show HHG posted a net loss in the six months to June 30 of £975 million, following on from a £343 million loss in 2001-02 and a £43 million loss in 2000-01."

Net loss for the last six months of $2.276billion

Sooo ... HHG is worthless ... the analysts called it correctly six months ago ... and HHG is trading as we speak and losing a shirtload ...

That puts AMP back to about $4.75 or so which is where it was trading recently ... may thru august.

At some point the smoke and mirrors number by Mohl and Co will unravel ... probably after demerger when HHG shares tank to zilch and yet again the long suffering AMP shareholders will be left with their AMP shares at a post demerger price around $4.50.

Cheers ... tight stops.


This is only my view ... read the red stuff.