amp price action today, page-8

If you read the following annoucement by MAQ and if you are short for the June expiry then it looks safe. Pay attention to the 12 month target of 6.20. That is a poor target for 12 months. Also pay attention to the "if they could reduce their debt...". So this suggests that there are contingencies. Nothing is certain yet. Hence I would assume the market may not do anything in the extreme short time. But who knows. Lets wait and see.
AMP: Dividend Payout To Be Lifted?

AMP has announced plans to buy-back up to $700m in offshore debt in a bid to reach their targeted debt level six months ahead of schedule. Macquarie Research Equities (MRE) believe that the early achievement of management’s debt target gives AMP the ability to lift their dividend by 20% from as early as March 2005.

The planned reverse tender for $700m of offshore debt represents a further significant reduction in AMP’s debt levels. If AMP successfully redeems $700m in debt then it will lower AMP’s debt to total capital resources to management’s 25% long-term target at least 6 months ahead of general consensus.

Achievement of this target suggests that AMP will not only be able to lift their dividend by a forecast 20% next year but they will also have surplus capital resources of around $400m. This could be used for capital management initiatives such as buy-back, special div etc..

AMP’s risk profile and operating performance continues to surprise on the upside following the demerger of HHG in December 2003. MRE maintain a short and long-term Outperform recommendation and 12-month share price target of $6.20/share.