This stock currently returns in excess of 10% plus imputation credits so it is of some concern that the SP has slipped in excess of 20% off its highs.Of course some of this can be attributed to the depressed market but is this the only reason?
IMHO this industry carries with it the risk that the banks may bring all of their business back inhouse or reduce their commissions to mortgage brokers.This could seriously adversely affect the income of MOC
This brings me to the real point of my post.CBA currently has made a friendly takeover offer of Count Financial[the major shareholder] which if successful [which it probably will be] will mean that CBA will increase its holding in MOC from 8% to 25% which will mean that any takeover of MOC by any other party will need the consent of CBA.
I was wondering what other shareholders thought that the interest held by CBA in MOC does to the risks that I have previously mentioned.Is it a good thing or a bad thing??
I bought this stock a couple of years ago for its yield and have enjoyed hansome divs and capital gain since then. Where to from here??
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