MOC

[winner69]

Mortgage Choice - only floated a few months ago

Quite a bit of action last day or so.

Some brokers starting to cover

I see doubling next 6-12 months

[winner69]

Another good day today

Presentation attached to last annual result is a good background to the potential of this outfit

[mark100]

MOC could be an interesting one to watch. It has been heavily sold off in the past 18 months due to commission cuts from the banks and falling mortgage applications etc.

The commission cuts are still impacting profit and have another 12-18 months to be fully reflected in the reported profit so earnings will fall again in FY10 before stabilising.

On the positive side, MOC has around half of its earnings from its trail book and is not subject to credit risk. Also with lower interest rates and the boosted first home owner grant there has been an increase in mortgage applications/approvals in the past few months.

MOC is also debt free and pays out 100% of earnings fully franked. Even after earnings fall again the FF yield will be around 10%.

Also Count Financial has around 15% and may come back with another takeover bid.

Chart maybe forming a bottom? MOC hasn't bounced with the other financials.