Hey BarnArse, it is me again. Just between you and me I think...

Hey BarnArse, it is me again. Just between you and me I think that some people just want to see lots of silver lining and no clouds for AMP.

I really do hope AMP does well in future. But here are some facts or thoughts to consider in making decisions or hoping for a few billion dollars to be added in value.

1. Is a new CEO really going to add billions in value given the size of AMP? Is there going to be a drastically different strategy producing a significantly different result? Or will he publish a strategy that people hope produces a better result?
2. It is not just about the Royal Commission issues. It is about industry changes resulting from ASIC etc.
3. There is margin compression.
4. There has been a reduction in government support for superannuation.
5. There is a threat to the AMP integrated model.
6. AMP will shrink after selling off assets. This will mean less profit. Return on shareholder capital will look better as there will be lesss of it!

I hope I am wrong. But until we see a strategy in place that makes sense that is producing results or looks like it will produce results we will not see a significant rise in share price. I think this may take some time. I don’t think it is about the Royal Commission.