AMP Share purchase plan: help me decide.

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ren1316

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#255784 29-Aug-2019 16:51

Hello all

I have been offered (actually all current share holders) to purchase up to $15,000 worth of AMP shares at lower of A$1.60 or 2.5% discount off average current price (A$1.65).

The way I see it:

A$15,000 @ $1.60 = 9375 shares.

Then sell off @ $1.65 to make A$468.

Anything wrong with my logic?

Is it worth the risk?

Would the share be trading around 1.65 after listing of new share placement?

Jon.

Fred99

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#2308251 30-Aug-2019 09:09

Well the one year chart doesn't look too hopeful, but OTOH based on the price yesterday, you make 7 cents not 5, less brokerage.

Who knows? If every shareholder does what you might (expecting to stag a quick profit) then what happens to the price?

sbiddle

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Biddle Corp

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#2308255 30-Aug-2019 09:20

It's just about guaranteed the share price will drop more with a rights issue.

With the volitility in shares right now thinking you could just make a few hundred dollars quickly is flawed logic. I've sold down a lot of my shares and seeing ups and downs of up to 10-20c each day of some of the others.

If you're willing to gamble you might make it back. I wouldn't be trying such a ploy with AMP though.

surfisup1000

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#2308261 30-Aug-2019 09:36

I wouldn't do this for such a small amount of cash.

You could lose money.

ren1316

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#2308262 30-Aug-2019 09:37

Thanks for replies.

I shall NOT subscribe to the offer.