dont listen to croc get into moc, page-6

MOC is a mortgage broker.

It is not a lender, so the affect of the credit crunch on MOC will be different to that of RAMS.

MOC's fee income may reduce as a result of bad debts. Some products sold by MOC result in MOC receiving a fee income based on balance of loan with lender. If loan becomes bad debt, then MOC will lose that income.

MOC's income may reduce with less people being able to afford to move into housing compared to other investent options.

However, main issue for MOC would be a change in fee structue made by lenders.

Then again, fee income may increase with more people using brokers as a result of the recent increase in offical interest rates.

That said, with MOC's income and profit level, it has the ability of expanding its mortgage business in Australia or Overseas. Australia's mortgage broking industry is very fragmented like child care and transport.

MOC currently has a nice dividend ratio.

CBA has been increasing it exposure to MOC in recent months, even after the credit crunch in August 07.

It is a stock to watch, near 12 month lows ($2.30 - currently $2.45), price hasnt been at this level for around years.

I will be looking to buy.

Note: this is not advice, DYOR