AMP Limited (ASX:AMP) is a business that is obviously a household name.
The company has just recorded its best financial report in probably a decade. The company is profitable again, paying dividends and the future certainly looks better than the past.
The company today February 15 has broken up out of a downtrend that began pre-GFC as shown on the weekly chart above.
This is after price fell significantly in line with the deterioration of the business during the GFC. The result being that the stock essentially traded sideways for nine years while time repaired the severity of the fall.
I have never owned this stock before and have entered a trade today near today’s close once the long-term downtrend was broken. The reason for a trade instead of an investment at this stage is that the company’s profitability is only half that of the companies I like to own for the long run.
There is a gap to fill around $5.75 dating back to August which is my first target (if it gets there).
Good News Story
I reckon it is good news for Aussies to see a company like AMP starting to strengthen and I wanted to be a tiny part of it even if it is fleeting.
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