Yesterday was a very rare day when not only was AMP up but also it was the ASX200’s best performing stock rallying over 8%. The out of character gain appeared to be triggered by the likes of Lend Lease, GPT and Mirvac lodging submissions to take over AMP’s $7bn office fund. The play appears to be a broken up AMP is worth more than todays $1.15 price tag, or just shy of $4bn.
With well over 80% of the companies remediation behind it and the last result in February showing a statutory profit of $177m for FY20 the worst may be behind the diversified financial business – they even had over $500m of surplus cash on the balance sheet. For the first time since I can remember the risk / reward looks compelling for AMP with 50% upside feeling far more likely than another 25% downside.
MM likes AMP as an aggressive play
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