Lexcorp Are you suggesting that a sensible strategy is to reduce...

Lexcorp

Are you suggesting that a sensible strategy is to reduce income even faster with no offsetting decrease in costs?

This may be a strategy that leads to a more competitive product. But it does not mean an increase in profit. It does avoid complete failure.

It just confirms what BarnArse is saying; this is a business in decline so a low pe is justified. Everywhere you look the market value of assets based on a sale price looks poor so the sale of asset strategy is not a big winner - it is a further loss avoider. And the strategy to cut price and costs will mean a lower return on retained assets.

This strategy can to a lower but sustainable profit than it has experienced in past. What is unclear is what this profit will be and what the shareholder capital base will be after any capital returns.

For there to be growth in the value of AMP they will have to pursue a growth strategy. Where is the history of any success in doing this at AMP? A new CEO will not be enough. A new CEO with a new team is not enough. It would have to be a different company.

Companies like Qantas turned around by doing what they did better plus positive changes in the competitive environment - others went broke.