The bears are forcing the price down because they want to buy their shares back and they are not getting them so they are trying to create a panic by selling even more and hoping those who bought will through in the towel.
The question should be if oml's exposure in US and Japan will fold them? OML is valued at R42B now including M&F share of R4.0B and Nedbank of R20B. Whats the value of its SA property portfolio and 100% of Skandia? Also would they pay out GBP135m in interim dividend now if they going bust? I'm sure there's a lot of bad stuff going on in the States and apparently they issued some puts on the Nikkei and we all know what that's been doing... Maybe this is one of those rare opportunities?
Its at a div yield of x16... 4 times its average... the thing here is that many would have been holding as it is a consistant div payer but with the rand losing 30% that effects the div in pound terms (ie it has dropped as most of OML income is still derived in rands...yes I think this is possibly one of those times....that said it is one of the worst relative performers on the top40 and has been so for a long long time.
Old Mutual releases details of exposure to American International Group As at close of business on 15 September 2008, Old Mutual Group ("Old Mutual") had exposure of $237 million to American International Group, Inc ("AIG") and related subsidiaries. In relation to shareholder funds: - Old Mutual does not hold common equity in AIG. - Old Mutual US Life ("US Life") has exposure of $76 million to senior debt, $84 million to Insurance policies, and $77 million to subordinated and hybrid debt. Old Mutual has no derivative exposure to AIG. - Old Mutual has minimal reinsurance exposure with AIG. Old Mutual continues to monitor developments in the markets closely, with risk management procedures, credit and capital controls continuing to ensure Old Mutual has a strong balance sheet and sound capital position. Enquiries Old Mutual statement on exposure to Lehman Brothers The announcement on 15 September 2008 that Lehman Brothers Holdings Inc. ("Lehman") has filed for Chapter 11 bankruptcy protection in the US has resulted in a sharp fall in the market value of Lehman's debt and equity securities. In relation to shareholder funds: Old Mutual Group ("Old Mutual") does not hold common equity in Lehman. Old Mutual US Life ("US Life") has counterparty exposure to Lehman through derivatives contracts and securities lending transactions. These exposures are either collateralised or on bankruptcy remote entities. The effect of unwinding these transactions is not expected to have a material impact on Old Mutual's earnings or capital position. As of 12 September 2008, US Life had a total general account fixed income exposure of $50 million senior unsecured debt exposure and $5.7 million of collateralised derivatives exposure. These exposures are not material within the context of Old Mutual.