Things continue to go from bad to worse for AMP's share price. And our comments last issue appear to have had the opposite effect on some subscribers than we intended. So please let us explain a little more fully. We said the cut in dividend to save $70m was a concern for a company with $158bn in assets. Unfortunately some subscribers took comfort in that $158bn figure. Their understandable reasoning being that with such an awesome amount of assets, AMP should be as safe as money in the bank. The fact is that AMP had $140bn in liabilities as at 31 December 2002, leaving $17.9bn in net assets. Now think about the size of those asset and liability numbers, they're huge. And a 10% fall in assets would translate to $15.8bn, or almost the entire balance of shareholders' equity. That's what the rocket scientists refer to as 'leverage' - and it's pretty serious stuff. We don't want to create unnecessary alarm but we do want to set the record straight. AMP's complex financial statements make it all but impossible to analyse and the huge amount of leverage means that both the potential gains and losses remain enormous. Don't be fooled into thinking that at current prices it can't go lower. That said, today's levels could look very cheap in a few years' time if things turn around. HOLD WHILE UNSTABLE.