Investors are bullish on Momentum Group Limited at 41.46, viewing it as a solid long-term hold with attractive dividend yields and steady cash generation from its life insurance business, with confidence in the company's cost management execution and inflation-linked earnings visibility keeping them from selling despite broader market volatility.
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Do you think MTM can hold its margins when claims keep rising? Insurance stocks have been under pressure, but at 41.45 the yield looks reasonable if the underwriting stabilizes. Not sure the market's pricing in load-shedding hitting claims either. Where is this from?
mtm's been range-bound for months but the dividend yield at r41.45 is still decent if you're holding for income. what i'd want to see is actual growth in the investment book rather than just treading water, especially with load-shedding pressure on household finances. the life insurance story works long-term but feels like it needs a catalyst.
MTM's been grinding sideways since the yields flattened out. Problem is life insurance plays like this live or die on client behaviour, and load-shedding's got everyone cutting back on premiums. At 41.45 you're not paying much, but I'd want to see some actual growth in new business before getting cute about it.
MTM looking CHEAP at 41.45 compared to where it was trading last year, bunch of weak hands panic selling life insurance on load-shedding fears but this company has been through worse recessions and still paid dividends. Sanlam and Old Mutual both recovered hard after similar dips, MTM has better unit economics and lower cost base so recovery should be even more explosive. BEST IS YET TO COME!!
Been holding MTM for a while now and the moves up lately feel more real than the usual noise. Life insurance is boring but that's the point, steady cash generation and those dividend yields actually matter when everything else is getting hammered. 41.46 is still decent value if they keep executing on cost management, plenty of room if the rand settles down a bit.
MTM bouncing nicely off the lows, 41.46 is starting to look reasonable for a long hold. Life insurance plays tend to track inflation and interest rate cycles pretty well, and with rates holding where they are the earnings visibility is actually decent. Been holding since the mid-30s and not planning to move, especially if they can keep the cost base under control.
@easy_money_sa spot on, the panic here doesn't match the actual book strength. Holding tight.
@easy_money_sa yep, that makes sense. dividend helps while you wait
MTM sitting at 41.26 and the dividend yield isn't doing much to make up for the fact that their asset base keeps shrinking. Life insurers need growth, not steady decline. What's the actual plan here, or are we just collecting coupons til the lights go out.
MTM sitting at 41.26 feels cheap given the embedded value in their life book. Sanlam and Old Mutual trade way higher on earnings, and Momentum's got solid recurring revenue from the protection side. Yeah the market's scared of rates and market conditions, but this isn't going to zero. Holding for the medium term, reckon we see better days.
@rawssy_links which embedded value release are you referring to, the half year or full year?
Embedded value is the key metric here, reckon the market's pricing in more deterioration than what's actually happening on the ground. Sanlam and Old Mutual trade at bigger multiples of their EV, but MTM's protection book is sticky income even when equity markets wobble. Worth digging into the latest SENS filing to see if the discount is just fear or something real.
mtm sitting at 41.26 and struggling to find momentum. life insurers under pressure across the board with bond yields moving and claims experience choppy. worth checking their latest embedded value release against sanlam and discovery to see if the discount is warranted or if there's real deterioration underneath.
MTM sitting at 41.95 offers decent value if they can keep momentum in their insurance book. Dividend yield is respectable for the sector, but need to see revenue growth accelerate beyond single digits to justify holding through a rate cycle.
MTM at 42.44 is criminally cheap for what this business does. Look at how much embedded value they're sitting on in their life insurance book, the recurring revenue streams are lekker solid and they're still trading below intrinsic. Old Mutual and Sanlam got re-rated hard once the market woke up to their actual earnings power, MTM's turn is coming. BEST IS YET TO COME!!!
MTM sitting at 42.44 and the dividend yield is actually decent if they can keep earnings stable. Life insurance is boring but it's the kind of boring that pays you while you hold, unlike the spec stuff that bleeds you dry. Reckon if they maintain book value growth and don't get hammered by claims inflation, there's a proper case here for patient money.
Reading the latest results, balance sheet holding up better than expected at these levels
Current R 41,45 — 50% of range
Fundamentals sourced from JSE disclosures. Updated quarterly.