My thoughts:
Mortgage broking is going to be tough business for at least the next 6 to 12 months. Maybe even longer, with the major banks choosing to move into this area and using extravagant incentives to capture market share.
Eventually, as the economy turns around, business lending will become more attractive and the banks will shift their efforts in this direction, leaving the mortgage brokers to resume their normal level of activity. The well established mortgage broking businesses such as AFG will bump along, surviving on their trailling interest income until this occurs.
In the meantime, the share price of these businesses will be depressed, and attractive to institutions, who have a long term view of the viability of the mortgage broking industry.
So there will be no short term outperformance by companies such as AFG, but if you can be patient, there will be attractive dividends and capital growth.
All IMHO
Cheers Westwind
My thoughts: Mortgage broking is going to be tough business for...
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Last
$1.50 |
Change
0.020(1.35%) |
Mkt cap ! $400.7M | |||
| Open | High | Low | Value | Volume |
| $1.50 | $1.50 | $1.50 | $2 | 1 |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 2261 | $1.49 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.50 | 7576 | 2 |
View Market Depth
| Last trade - 09.59am 02/05/2024 (20 minute delay) ? |
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Last
$1.49 |
Change
0.020 ( 0.31 %) |
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| Open | High | Low | Volume | ||
| $1.49 | $1.49 | $1.49 | 74 | ||
| Last updated 10.03am 02/05/2024 ? | |||||
| AFG (ASX) Chart |