MOC - Mortgage Choice

[RandR]

I wonder what could cause the jump in expenses. Having procured my mortgage through MOC (worst decision I made, incidentally), I reckon most expenses would be mostly fixed.

Further, correct me if I'm wrong, but MOC works on a franchise model, which would (IMO) have the effect of pushing the operational expenses onto the franchisees and leaving the head company with the expenses of managing the franchise.

Something doesn't quite add up for me.

new 'head office' building ? Have they taken up residence in more expensive real estate? mmm

Im actually slightly interested in this company, has had 9 consecutive years of substantial growth in book value with the use of $0 debt. which looks like a great franchise business to me. Reasonably solid cashflow coming in due to the trailing commissions. I just wonder how much of the future mortgage market is going to be sourced by old fashioned brokers. Because it seems like every man and his dog is starting a mortgage broking division. (alot of super funds are doing so to keep their members away from banks)

 

[luvbhatnagar]

Interesting company especially with all the interest rate headwinds and slowdown of the property market. Seems to be recovering now?

 

[Wysiwyg]

If you had a smelly finger below $1.70 you would be up less than 10% with the possibility of price coming back at your entry. Questions you might consider (or be ignorant of) -

1) is the low in?
2) will the price come back to my entry?
3) if price comes back to my entry do I sell at break even?
4) if price comes back to my entry do I move my initial stop loss tighter?
5) if price comes back to my entry do I hold my nerve and adhere to my initial stop loss?
6) do I sell some now and hold the rest for the possibility of a higher price?
7) do I hold for a higher price because I know I picked the low?
8) do I sell all now and thank my luck stars that I finally made a profit on MOC?

 

[malachii]

I've loved this company long time

It's an interesting one. I hold it in my "long term" dividend payment account (and have done since just after the float) and I also trade the living daylights out of it. Even in a downturn it's a good, consistent "bouncer" between price levels.

Not sure I'd buy from here. I'd let the price action settle down a little. I did buy (to trade) in the 1.60s and sold in the mid 1.70s. I'm now looking to see if this is a reversal to the upside (which I doubt) or if this is just topping out to track lower again.

malachii

 

[malachii]

Looks like the market likes what's being said at the AGM.

malachii

 

[Knobby22]

Good result. Some growth. Increased dividend.
Very happy.

 

[Knobby22]

This has been taking off lately, my second largest holding.
If interest rates keep falling then this is still a no brainer at these prices with a yield still above 7% and as a broker, no risk of bad debts like the banks.

 

[galumay]

Yes Knobby22, I have done quite well from patiently holding MOC, took a while but moving now!

 

[Muschu]

This seems to be travelling OK..... Is it the pick of the mortgage broker stocks in anyone's opinion?

 

[galumay]

I dont know about it being the pick of the mortgage broker stocks - I have never looked to see if there are any others. Its a good business and a cash cow. I worry about the risk with being so stongly correlated to our massive bubble property market, but have stayed invested and enjoyed strong returns. MOC has no debt which gives me some comfort and at current prices its still quite a way below my calculated range of IV.

 

[Muschu]

Thanks galumay.

Isn't AFG a mortgage broker? I think I caught the tail end of a TV show last week which was questioning their operations and particularly their incentive system... Might have to do a search for it.

 

[Muschu]

Any thoughts about the 7% fall yesterday? This was several days after a record announcement, an increased dividend and going XD. Slight recovery so far today but still seems odd....

 

[Knobby22]

MOC does it every time.
After dividend it tends to drop double the dividend then muddle along for a few months before rising again usually higher than the previous price. Too much dividend stripping methinks.

 

[Muschu]

Interesting Knobby. Did not know that and took the opportunity to top up this morning.

 

[Knobby22]

Interesting Knobby. Did not know that and took the opportunity to top up this morning.

It might still drop a little more. Look at the previous few years. it's quite weird how the price moves.

 

[Knobby22]

It has turned now. Lookin good.

 

[Muschu]

It has turned now. Lookin good.

Certainly heading lower today.... But why?

 

[Knobby22]

Certainly heading lower today.... But why?

Wouldn't worry.It's ranging.
You will notice that often when a share rises quickly it drops down again to the previous low, a sort of double bounce effect before rising again. Price could drop a further 3c temporarily. If it drops below that then we should be trying to find out why. If it doesn't get down to 2.22 then that is a bullish sign.

 

[galumay]

Certainly heading lower today.... But why?

Unless you are a trader, why would you care? Markets wiggle around every day, its random and unpredictible, best ignored.

 

[Muschu]

Unless you are a trader, why would you care? Markets wiggle around every day, its random and unpredictable, best ignored.

Because I hold and am thinking of adding, long term.