I am a patient holder of AMC in my super fund. The only reason I...

I am a patient holder of AMC in my super fund. The only reason I still hold is that I see it as a super blue chip that will still be around in 20 years, and I plan to keep it for that long. (However it is only because my other stocks have gone up that I can afford to keep a dud performer like AMC).

As I see it, AMC are fighting the rising $A currency as most of its earnings are overseas. A lot of the profit gains last year were lost due to this.

Also one of their divisions hit some snags in the last report so "restructuring" is necessary in this area (where? cant remember). This was the item that scared the analysts and started the AMC price decline.

At the end of the day most companies that go on a massive acquistion binge (as AMC did to get where they are) will hit problems as they eventually get a dud buy, the purchase price is too high and shareholder value is not created but destroyed.

I think the market is in waiting mode to see whether AMC can get some real profitibility gains going again. The price will go either way strongly if there is not a currency move to blame next time around.

acturtle