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Unpacking AMP’s results for FY19
AMP’s first-half results were released last Thursday morning – what has been one of the most hotly anticipated profit results of the past few years. Hugh Dive from Atlas Funds Management explains how investors now have insight on new CEO De Ferrari – revealing his strategy to turn around the beleaguered 170-year-old financial services company, selling their life insurance business for the second time and conducting a large capital raising. Since March last year AMP’s share price has declined from $5.50 to $1.86, prompting some analysts to view that this may be the bottom for AMP.
But is it a buy or are you just catching a falling piano? Dive’s summary is that: “Maintaining the status quo for AMP is clearly not an option for the new CEO, but this is likely to be one of the more complexcorporate restructures in the history of Australian financial services. Reinventing AMP will probably take longer and be more expensive than management currently estimates, as such we would prefer to watch AMP being “reinvented” from the sidelines given AMP has suspended the dividend for the near term and currently fails our Quality Filter Model.”