with 3% you must believe the business model has adapted to the...

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govr

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13/12/18

21:51

Post #: 36853565
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Originally posted by noomxx ↑

In my opinion now is the time to strike on MOC and buy.
$14m npat equals around 11c eps.

MOC is a great little company, it's capital light which allows it to pay out most of its earnings as dividends.

The company is one of few on the asx that has no debt. so there is little risk of business liquidation risk of difficult trading conditions continue.

a historical review of its ROE is high, suggesting a good underlying business, especially as there is no debt to inflate the E in ROE.

they have recalibrated the franchise model more in favour of franchisees. So this step down in profit to MOC is already factored into current profit forecasts.

the residential industry might well have a slow down, but the underlying business will not disappear or become obsolete.

the big 4 have explicitly endorsed the mortgage broking business. it efficient for them.

the one risk is the royal commission and payment of commission.

The season has arrived and it's time to buy before the sun comes out and the future price is much higher.

I have taken a reasonable position equal to 3% of the portfolio.

expected fy19 dividends near 9-10% fully franked

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with 3% you must believe the business model has adapted to the new reality its a pity there is not a mortgage choice broker on the forum would have loved to hear their viewpoint

MOC Price at posting: $1.11 Sentiment: Buy Disclosure: Held
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0 Great analysis

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with 3% you must believe the business model has adapted to the...

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