AMP

[George]

Am looking to buy a few after retreating from a high of 6.00 but was concerned that other insurance stocks have risen today while AMP has not. Often this means a fall if the others correct at all. The bollingers have tightened which is supposed to mean a breakout one way or the other. Any thoughts would be welcome.
George.

[thekiwi]

Has moved through resistance at 640 area and will be interesting to see todays trading after announcement of profit up 72%

Could the giant be turning around?

[thekiwi]

AMP
18/08/2004
HALFYR

REL: 1058 HRS AMP Limited

HALFYR: AMP: Half Year Result Commentary

AMP reports 72% increase in half year net profit before other items

Improved cashflows and investment income and a continued reduction in costs
have contributed to a 72 per cent increase in AMP Limited's net profit before
other items to A$412 million for the six months to 30 June 2004, compared
with the previous corresponding period.

Business unit operating margins rose by 19 per cent to A$279 million in the
first half while the underlying contribution, which smoothes out investment
market volatility, rose 21 per cent to A$311 million. Return on Equity (RoE)
on an underlying basis rose to 17 per cent and on an actual basis to 22 per
cent.

Net profit after other items was A$378 million compared with a loss of A$2.2
billion in the previous corresponding period.

Directors have declared a dividend for the first half of 13 cents per share
(75 per cent franked), compared with 7 cents per share in the previous
corresponding period (15 per cent franked). The increased dividend - which
represents the first step in returning capital to shareholders - reflects a
lift in the dividend payout policy from 60 per cent to 75 per cent. This is
expected to be maintained in the medium term.

AMP Chief Executive Officer Andrew Mohl said that post the December 2003
demerger, AMP's focus had been on operational excellence in four key areas:
reducing unit costs, growing cashflows, outperforming on investments and
lowering the Group's gearing.

In terms of the focus on reducing unit costs, controllable costs fell by 1
per cent on the previous corresponding half to A$396 million, while the cost
to income ratio across the group was 5 percentage points lower at 42 per
cent.

Cashflows improved with growth in AMP Financial Services inflows of 21 per
cent while cash outflows were down 8 per cent. This resulted in a turnaround
in net cashflows of almost A$1.1 billion from the previous corresponding half
to A$540 million. In AMP Capital Investors, external net cashflows for the
first half were $1.6 billion, a turnaround of $2.3 billion on the previous
corresponding period.

Investment performance was again strong, with 81 per cent of Australian
Assets Under Management (AUM) outperforming benchmarks for the year to 30
June 2004. The flagship Balanced Fund was in the top quartile while
significant value was added relative to benchmark in the AMP Life No. 1 fund.

Finally, three major debt reduction initiatives in the first half lowered
Group debt levels by almost two-thirds with the gearing ratio (defined as
debt to debt plus equity) falling from 55 per cent to 29 per cent over the
half. AMP has achieved its target debt levels more than six months ahead of
schedule.

"Post demerger, AMP is a more focused and agile company with a passion to
succeed. Our strategic intent is clear - to run the company better than it's
ever been run before," Mr Mohl said.

"Improvements have been made across the business. In AMP Financial Services,
we have a clear strategy focused around high quality advice-based
distribution and low cost product manufacturing.

"In AMP Capital Investors, we are now firmly based as a regional asset
management business. Our strategy to establish partnerships with other
specialist fund managers, to continue to develop asset management
distribution capability in Asia and to develop specialist retail funds is
progressing well.

"Finally, in Cobalt/Gordian, the run-off insurance businesses are being
tightly managed with a focus on maximising profit and increasing surplus
capital."

Review of business unit performance

In AMP Financial Services (AFS), operating margins rose by 29 per cent in the
first half to A$225 million compared with the previous corresponding period,
driven by improved cashflows and persistency and further cost reductions.
Within this result, there was a 92 per cent increase in contemporar

[tracker]

absolutely a buy the rumoe sell the fact type of situation here
got pipped at the post on the short,
there is always another coming along
where to now tevhie guys
trade well
tracker

[thekiwi]

643 area resistance seems so long ago now

It must be a serious possibility now, given its run since March 2004, that we can a testing of resistance at around 821 area. With the stock being above 720 it really is looking good.

[thekiwi]

http://www.smh.com.au/news/Business/...810915044.html

AMP pushed up as capital return looms
By Lisa Murray
January 19, 2005


The prospect of a $1 billion-plus capital return for investors has boosted AMP's share price to its highest level in almost two years.

Chief executive Andrew Mohl, who was speaking at the company's financial planners conference in Auckland yesterday, is expected to update the market on AMP's capital management plans at its full-year results on February 14.

In a report released yesterday, JP Morgan insurance analyst Shane Fitzgerald estimated AMP's surplus capital at almost $600 million and said the group was capable of returning double that amount to shareholders.

Mr Fitzgerald said that AMP was unlikely to "fire off all cannons at once" but investors should not underestimate the potential for a big capital return. He expected the company to return capital through a special payment to shareholders of up to $900 million and debt reduction of up to $350 million.

AMP shares jumped 17c yesterday to close at $7.60, their highest level since February 4, 2003, when the company was plagued by capital problems and on the verge of announcing the amputation of its gangrenous UK arm, now HHG.

Some brokers also said AMP's share price was being boosted by lingering rumours that ANZ was running the ruler over the wealth management group.

[dumbass]

maybe getting ready to break out
testing down trend line , has broken through previous support (ie didnt repolarise into resisitance) , divergent macd , above average volumes going through on rally.
worth watching

[dumbass]

nice profitable trade but tightening stops as im picking a market correction willl unfold soon

[lou]

Hey guys I have just done my first chart to post on Share Trader. Would like to get your feedback.

Attachment 3451

AMP has been downtrending since mid April and has lost about 19% off its April Peak.
It looks like it is about to break through resistance at 6.40 with a DMI cross over.

Could be a worth a buy with a stop loss around 6.10

What do you guys think?

[Phaedrus]

Good on you Lou. One of the best ways to evaluate the strength of any breakout is to see whether it is supported by increased volume. So, your chart really needs to show this in some way. With BigCharts your options include :-
(1) A volume plot.
(2) A "Volume+" plot (better, because up and down volumes are differentiated).
(3) On Balance Volume (better yet because OBV gives you a running total of volume in/out and any overall trend is more easily seen).

If you were to buy, you would need to position your stoploss somewhere below $6.06 to take in the latest low of 27/6/11.