Micro Focus Share Discussion Threads

[m4ybe] 23/9/2016 11:02

The AGM yesterday has turned the share price around so far, yesterday best day since the top without the usual drop to negative at end of day.

[montyhedge] 23/9/2016 09:14

With flat to -2% revenue for this year, I can see this shareprice struggling. At current price market giving CEO benefit of the doubt. He has bet the ranch on this deal.

[montyhedge] 23/9/2016 09:02

Very Ambitious, my target 1975p.

[sogoesit] 22/9/2016 09:45

In addition, the business model is to extract higher margins from legacy "revenue".
(Read the write-up on the HPE acquisition).

So, although revenues, even 'tho up 50% last financial year with acquisitions, are now expected constant (until HPE gets swallowed) there should be lower costs, higher margins >> more cash to pay down debt and return dividends and higher EPS.

As you say, bonio, the GBP reporting gears the USD constant revenue and some costs lower as a result too.

NB The share price is now at or above double the pre-Attachmate/Serena acquisitions. So expect HPE to move the share price higher post the acquisition; roughly another double. My expectation for end 2017 is £35,
dyor

[bonio10000] 22/9/2016 08:36

The fact sterling has massively declined would, I suggest, mean actual business is well up.

It is a legacy software business, so as the products are mature they will naturally reduce in revenues, but that is their model.

All they have done is take out currency to give a better view of the underlying business.

[soundsplausible] 22/9/2016 08:34

montyhedge
I am new to this share (came in - 9 months ago) and the AGM statement seemed odd to me too. Anything minus does not sound good, however I looked back at last year's AGM statement and they stated..

"expected to decline by between 2% and 4% on a constant currency basis".

Now we all know that profit and turnover has been on an upward trend for some time so I am confused as to what this means in English.

[montyhedge] 22/9/2016 08:28

Flat to minus 2% outlook, is that good?

[montyhedge] 21/9/2016 17:59

Shareprice going nowhere until this deal digested. I think back to 1935p.

[m4ybe] 20/9/2016 13:01

USA clients and UK developers seems rather ideal.

[m4ybe] 20/9/2016 12:59

Their income will be in $ so they'll get it back.

[montyhedge] 20/9/2016 12:39

The pound so weak this deal going to cost a fortune. All in dollars the payment.

[montyhedge] 20/9/2016 11:26

So we have to give them $2.5 billion cash, is that right?So weak pound making that more expensive.

[csmwssk12hu] 18/9/2016 23:06

That's probably because they missed out on buying some before they went up!

[montyhedge] 18/9/2016 12:38

I see The Times have a SELL rating.

[montyhedge] 16/9/2016 11:28

Like I said these will drift, deal not until 3rd quarter 2017.

[montyhedge] 16/9/2016 11:01

These are going back below 2000p, 1935p my target.

[orange1] 16/9/2016 10:53

Adrift in a sea of common sense.

[sogoesit] 16/9/2016 10:44

Lol! I think monty has a "nervous disposition", hey?
"Adrift" in a sea of uncertainty...

[montyhedge] 16/9/2016 09:25

The market giving him the benefit of the doubt with the high share price.But deal long way off, in the meantime I think share price will drift and shares don't drift up.

[montyhedge] 16/9/2016 09:19

His bet the ranch on this deal. Can he deliver.

[diku] 16/9/2016 09:14

Is there a sting in the tail of the deal the market hasn't figured out?...

[montyhedge] 16/9/2016 09:04

Micro were lucky, normally the bidder, shareprice falls.

[m4ybe] 15/9/2016 22:05

UK share options require a wait of 3-4 years, so yes it applies to this latest lot. USA 'stock options' mature much quicker.

[diku] 15/9/2016 21:59

Freebie club for members only..