If the FTSE falls below 2,500, AMP's UK liabilities on their capital gauranteed products will blow out to such a degree that they'll eliminate any profits from their Australian operations.
What is a company such as AMP worth?
Answer: AMP is a financial services company. For this very reason, it has a very low NTA. Financial sevices companies get priced at a multiple of their earnings. What will be fair value for AMP if they heve negative earnings for a number of years?
Think about it.
Note: i didn't say AMP will get to $2.00... i have merely said that if the FTSE goes below 2,500, and AMP have not hedged between their outstanding positions between now and then, then they'll be in deep poo-- and $2.00 will be the conequence.
danger amp in decline, page-14
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Last
$1.09 |
Change
0.005(0.46%) |
Mkt cap ! $2.860B | |||
| Open | High | Low | Value | Volume |
| $1.10 | $1.10 | $1.09 | $6.516M | 5.973M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 10 | 771452 | $1.09 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.09 | 62091 | 8 |
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| Last trade - 16.10pm 04/07/2024 (20 minute delay) ? |
| AMP (ASX) Chart |