Avvaa World Health Care Products Inc (AVVH)

[StockLogistics]

Comparison of profit margins in the real estate industry in recent years (residential vs commercial)

Residential:

2017 -

“ Quicken has an average gain-on-sale margin of about 4.1 percent, according to the bond document. The broader industry booked a 1.3 percent effective margin in early December, according to a Mortgage Bankers Association proxy for gains on such sales.”

https://www.crainsdetroit.com/article/20171227/news01/648721/dan-gilberts-quicken-loans-takes-on-big-tech-after-beating-the-banks

2020 -

“For the full year 2020, Rocket originated $320 billion in mortgages

That helped generate $15.7 billion in total revenues.

a total of $9.5 billion in profits for 2020.

Rocket managed to produce a gain-on-sale margin of ***4.41%*** in the fourth quarter“

https://www.housingwire.com/articles/rocket-mortgage-made-9-5b-in-profits-in-2020/

2021-

This margin decreased to 2% in the first quarter of 2021, leading to a 50% downturn in RKT’s share price, Net income increases and year over year revenue increases meant zero to investors, who sold off once they saw the margin decrease by 50%, therefore it is the profit margin on these loans that real estate industry investors care about imo more than any other parameter, based on the RKT case study.

Commercial:

2021-

What GQ’s profit margin is would in theory determine the direction of the share price from quarter to quarter as it changes, as well as how much institutional investors might care about the future of the stock, hopefully this particular number is provided after the custodianship is completed. I am guessing that the margin is higher if there are less employees in a more compact operation, and in commercial real estate in general.

“Net Profit Margin
Operating Profit-Interest Expenses-Tax Expenses/Revenue X 100”

https://www.opportunityfund.org/profit-margin-formula-what-is-it-how-to-calculate-it-how-to-improve-profit-margin/

It was mentioned that GQ’s tax expenses could be decreased by the carry over from the previous debt.