After reading a few of the older comments on this stock I see a...

After reading a few of the older comments on this stock I see a pattern forming. This forum has a lot of people who are positive about AMP and its future and a few who are negative. The positive people keep on spouting about how wonderful AMP is but continue to deal with the facts in a pretty loose manner. Meanwhile, the stock has continued it's steady (and inevitable) decline.

AMP will announce their next steps tomorrow but there is a long way to go for this business. Sure, we can expect some form of capital return to shareholders but this won't drive the share price up by much. We then have AMP sitting on a pile of cash and looking for somewhere to spend it. If they spend it wisely they could get a bolt-on acquisition at a knockdown price but can AMP be trusted to manage another acquisition? After all we all saw what happened with AXA.

Moving forward we are likely to see reduced earnings across the board. WE are now in a recession and there are only very limited growth options for most companies at the moment. AMP is likely to suffer from the recession in the same way as most other similar companies so it is not likely that they will experience any growth in the near term. With that in mind, I think that AMP will not see a share price above $2 ever again. It could bounce off the back of tonight's announcement but this will be short-lived.

Could AMP be busted up and sold? Sure could but at what prices? The whole business is reliant upon the wealth business to bring in the clients and without new money, the business is in contraction.

I could be wrong and time will tell but I can't see this business turning it around in the next couple of years.

Of course as usual, dont take my word for it and do your own research.