A quick look below, at a daily chart for the bad behaving stock of AMP.
As a kid I recall AMP – at that time not an ASX listed company – and even then, it was not a highly revered company.
The brand was associated with door to door insurance salesmen – "agents" in the main - selling you insurance stuff you neither understood, wanted nor needed.
And I confess later in life I ashamedly knew some of these hot flashy sellers.
Not my choice.
To see some of the current executives wreathing and sweating in the witness box at the Banking enquiry was minute humiliation considering the chagrin caused to so many over the decades.
To resign is an easy get out.
White collar misdemeanours get passed over in a relative easy sense, compared to the small-time offender who does not have the mega millions that corporates have to mount expensive defences.
Shareholders money of course for the executives.
Anyway...
The daily:
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AMP Limited (AMP): Daily Line Chart
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Click to Enlarge
Ok with all the bad stuff that was made public you would think this is a share price scenario that you would expect.
We see oscillating over the last month with buyers and sellers in balance.
When this happens, we can expect a breakout one way of another.
It appears an upward movement is more likely as in balance the sentiment is that the stock has been punished a little too hard.
Maybe some think that.
But more punishment could be unleashed in the coming months after a temporary reprieve.
Lets look at the Monthly:
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AMP Limited (AMP): Monthly Line Chart
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Click to Enlarge
I am not suggesting all is bad with AMP – far from it – but when you see a long-term share prices like this you need to ask questions.
It has been on the nose for some time and a big portion of shareholder land do not think highly of this stock. You could conclude this even if you were a visitor from Mars.
This is not rocket science – excuse the play.
So, we see AMP heading to 15-year lows.
I cannot recall ever actually investing in AMP at any time in my life – in any form.
If for some reason I suddenly was gifted AMP shares I would dump the shares. Well I might wait for a wave four recovery and then dump.
Just as other shareholder’s will do.
I only like robust stocks which reflects sound management and strategy. And dare I say it proprietary.
I would chance my arm and suggest that AMP may not even exist in a few years. Like other house hold brands/names they may not survive in a new world order. Have had over a decade to get their house in order and it appears this has not happened.
Well I speak as a man from Mars as I have no inside info on the fundamental’s or internal machinations.
If I could add a little more homespun philosophy... Companies implode from within. Just like empires. There have been no exceptions. Look back in history and we see over indulgence; declining discipline and moral values have brought inefficiencies and eventually decadence resulting in predators moving in. Read ‘’Plato’s Republic’’ for more.
The basic text in Philosophy which was a small balancer in my hard nose Economics degree.
Enjoy the ride
Tom Scollon
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