I think the market got the jitters when AFG put out their quarterly Mortgage Index Report for Q1 on 6 Oct. If you go to Table 7, it shows that AFG's share of mortgage origination dropped from 10.39% of the market in Q4 of 2022 to 7.95% in Q1 2023. That is a drop of over 20%. I think that is what has caused the reluctance to push the share price higher. The origination fees and the trailing interest income are the 2 main sources of AFG's revenue, and I think the origination fee revenue might lag the writing of the loans.
So I think the market is waiting to see if the percentage of origination can rebound and if fee revenue can be retained or drops significantly in Q2.
Even if there is a short term drop in earnings, I think the longer term still looks positive.
Cheers Westwind
Ann: Dividend/Distribution - AFG, page-37
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Last
$1.41 |
Change
0.000(0.00%) |
Mkt cap ! $380.4M | |||
| Open | High | Low | Value | Volume |
| $1.42 | $1.43 | $1.40 | $98.53K | 69.86K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 2255 | $1.41 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.41 | 5760 | 1 |
View Market Depth
| Last trade - 16.10pm 24/05/2024 (20 minute delay) ? |
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Last
$1.41 |
Change
0.000 ( 0.36 %) |
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| Open | High | Low | Volume | ||
| $1.41 | $1.43 | $1.41 | 18616 | ||
| Last updated 15.58pm 24/05/2024 ? | |||||
| AFG (ASX) Chart |