What media/people did not mention about AMP?

A lot of people here on this forum been arguing endlessly about governance/ reputation and all that. These are all observational metrics, which I would not argue with anyone.


The true crisis that AMP was facing was CASHFLOW. If one looked closely at the annual report, AMP was obliged to pay back around 1B between 2018 and 2019. On top of the debt obligation, AMP is required to pay the remediation, which might easily be more than 1 billion. You could probably see why they had to sell the life insurance for 1.9B cash and some constant income stream valued at 1.3B.

If You have read the annual results presentation, AMP CEO said about 700m of the 1.9B would be release to shareholders, which did fit into tight cash flow conditions.

IMO, the cash flow problem was behind us. There are a bunch of management personnel buying shares worth about 1.2M AUD in total pricing around 2.3X dollars a share.

In short, do i think it should be worth 5 dollars a share in the next 12 months? prob not. Should AMP at least be priced on low 3 dollars range ?I would prob say Fxxk yes. thats about 30% upside.

happy investing