Ann: AMP updates position on capital and costs, page-13

The strategic justification that insurance is a distraction is very poor. For many reasons. While the logic that they cannot compete with global players may have some merit, it then begs the question for the rest of the business, in particular AMP capital. 

The new AMP Directors and leadership team are convinced this is the right thing to do and that others don’t see the brilliance of the plan. They provided  initial information that contributed to a loss of $2.7 billion. Fund managers and others suggested that this information was was misleading. Having got such a negative reaction they tried to explain it better - which raises many questions about the distance between their self belief and how shareholders see leadership at AMP.

After this we have seen just a $2 billion loss of value in a week, in part as people are excited about getting 37 cents or so back. 

So with this new simplified, less capital intensive, less distracting, smaller business, you probably have a $2.50 stock with hopefully some growth potential or potential to being taken over as well as a 37 cent payout. I am not sure if it would be double counting but there may be value in the assets received for the sell off I have not allowed for in profit to determine the share price. This may be potential upside. 

So the good good news for me is that it looks more valuable than the price dropped to. But I still cannot see the path to $4 or $5. It looks like a $3 stock valuation today. And the buyers are saying it is a $2.50 one. So I am now am optimist.