MOC - Mortgage Choice

[Knobby22]

Get ready to short it.
Numbers were terrible simply on the market weakness thus far.
There was definitely the Shorter terror a also being anticipated but gut tells me this will see 61c

Investors treat it like a bank but it's a broker.

Pluses, dividends worth more, change of interest rates to occur which encourages switching.
Property prices may have stopped falling.

Negatives - interest rates going down which is less likely to encourage switching.
Property Investors back in control which is a negative to first home buyers who use this service.
Continual online competition in market which young investors are savvy enough to use.
Long term lower returns due to new arrangements Mortgage Choice had to make with their franchisee.

I think it is high. 61c would be a buy. So yea, with momentum it could easily happen especially if there is a correction which is starting to look likely with all the trade wars, Brexit and other stuff.

 

[frugal.rock]

OK, had a very busy weekend, but here is my reasoning for buying Mortgage Choice Limited (MOC). I've been watching it for a while and didn't pull the trigger till Friday because sometimes buying too early is just as costly as buying too late. I have had quite a few stocks that has gone initially against me and once I have exited, it has soared like there is no tomorrow. So perhaps my initial analysis was good but the timing was awful, and because this is a trading portfolio it's not like I can hope and pray when a position has gone a fair bit against me.

Anyway, I think MOC is at an inflection point where it may be the right time to buy. It's also got multiple triggers that's got me exited, such as:

• Good fundamental reasons and why favourable conditions are just about set for this stock
• On a longer term chart, MOC has hit All-Time-Lows and bounced back
• On a shorter/medium term chart MOC is breaking out to the upside

So let's talk about each of those points. First the fundamentals. Since the pandemic has hit, most of MOC's customers have gone on holidays and they are about to come back in a big way. Yes, the mortgage holidays offered to customers by the banks are about to expire very soon and when they do, home owners and investment loan owners will be scurrying back to companies such as MOC to check, compare and re-finance.

I don't think there is many competitors to MOC on ASX either, so MOC is kind of a monopoly to dominate across the ASX. I could find Aussie Home Loans as a competitor, but they are not listed on the ASX.

On a long term charting perspective, MOC has bounced back from what looks like a false break of the All-Time-Lows:
View attachment 112333

On a medium term chart, it's made a breakout to the upside, which is encouraging:
View attachment 112334

I also bought a smaller stake in another stock in an area that I was researching up. I was encouraged by the take over of 3P Learning Ltd (3PL), that was offered a very nice premium to it's share price, so started searching everywhere for similar themes throughout the asx.

Although not exactly in the same online learning space for kids, I found another stock that is in the area of online security for kids. It has run up quite a bit lately and I am not a big fan of chasing stocks. Yes, I realise that might be counter-intuitive to a lot of the momentum traders and other system based trading members on the forum. So anyway I decided to try my luck with a smaller position size than I would normally buy during the closing minutes of Friday's session. The company is Family Zone Cyber Safety Ltd (FZO).

They basically protect children across all devices for schools, home etc:

View attachment 112335

Although not profitable yet, this company has been growing fast. In fact the pandemic has anything but accelerated that growth it seems:

View attachment 112336

Open Portfolio:
View attachment 112338

Nice post.
A good day for MOC.

 

[over9k]

Looking good today. You going to sell or ride it out?

Will be interesting to see what the pullback is.

 

[greggles]

REA Group has entered into a Scheme Implementation Agreement with Mortgage Choice Limited to acquire 100 per cent of the outstanding shares in MOC for $1.95 cash per share. The Mortgage Choice board is unanimously recommending that shareholders accept the offer.

Smart move by REA to fast track their move into mortgage broking given the recent resurgence in residential real estate prices. This deal appears to be a win/win scenario for all involved.

 

[System]

On July 1st, 2021, Mortgage Choice Limited (MOC) was removed from the ASX's Official List in accordance with Listing Rule 17.11, following implementation of the scheme of arrangement between MOC and its shareholders in connection with the acquisition of all the issued capital in MOC by REA Financial Services Holding Co. Pty Ltd, a wholly owned subsidiary of REA Group Ltd (ASX: REA).