MENU

Why AMP Limited shares just hit a new 52-week low

Just when AMP Limited (ASX: AMP) shareholders were starting to think things couldn’t get any worse the financial services and general insurance group printed a new multi-year share price low of $3.12 today.

Investors are heading back for the exits probably because of more shocking revelations coming out of the Royal Commission as to some of the dodgy business practices across the general insurance sector. This week the likes of Commonwealth Bank of Australia’s (ASX: CBA) CommInsure and junior player Freedom Insurance Group Ltd (ASX: FIG) have copped a hiding after some of their business practices were exposed before the commission.

Moreover, it seems almost certain that ASIC and the commission will recommend significant reforms of the sector including when conflicted remuneration is permissible across the business models of general insurance providers.

AMP was already on the canvass after the Royal Commission exposed its fees-for-no-service scandal across its financial advice business that resulted in the departure of its then CEO and chairwoman in quick time.

The group posted a profit of $115 million for the six months ending June 30, 2018, which includes the impact of a $290 million provision set aside to cover remediation costs as a result of its recent operational failings.

OUR #1 dividend pick to grow your wealth now is revealed for FREE here!

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!