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Micro Focus Investors - MCRO

Micro Focus Investors - MCRO

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Micro Focus International Plc MCRO London Ordinary Share GB00BJ1F4N75 ORD 10P
  Price Change Price Change % Stock Price Last Trade
10.90 2.25% 495.20 16:35:21
Open Price Low Price High Price Close Price Previous Close
480.00 480.00 497.60 495.20 484.30
more quote information »
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Top Investor Posts

rochdae: elsa, Can't recall now where the 300 million came from. Think it was a broker comment on the likely result of the tie up. Anyway, it was post results and probably an underestimate imo given the accelerated trend in this area and mcro's customer base. Https:// Also mcro innovating across its product offering. Really starting to see the effects of new management and their strategy. Woefully undervalued here on any financial metric. Andy Brough's interest shows the big players getting interested.
planit2: I bought more just now, want to build my stake back up before the update. I am a bit more worried that this will either be a big move up or down. The expected figures will show a further sales decline and the investors buying in since the Amazon update might be very impatient resulting in a sudden drop. The other option is a beat and a sign that the sales decline has arrested and/or margin continues to increase. If that is the case it will show MCRO as even more undervalued and remove a lot of the risk priced in. Does anyone have a different view than this? Is everyone here still ok with a revenue decline between 5-10%?
jw330: when exactly is the update? I've had a look on their investor relations bit couldn't find it
scepticalinvestor: This board obvs has the most successful investors in the FTSE...;)
brucie5: purchaseatthetop10 Mar '21 - 11:54 - 10626 of 10631 0 0 0 Brucie....I chat to *Miss Fundamentals* for her opinion ----------------------------------------------------------- Ah yes, of course. And on that front i notice that MCRO qualifies for only one Stocko screen atm, which is "Cash Accruals". I'd never noticed it before, but it might appeal to your experience in accountancy. (It's all pretty much Greek to me..) "Cash Accruals is a quality investing strategy inspired by research into the 'accrual anomaly' by American accounting professor Richard Sloan. In company accounts, accruals are adjustments made when revenues have been booked but cash has not yet been received. This screen uses low levels of accruals as a positive quality signal. It looks for companies with a low accrual ratio, where free cash flow is higher than net income and where earnings-per-share is growing. Professor Sloan's research found that: "...firms with relatively high levels of accruals experience negative future abnormal stock returns that are concentrated around future earnings announcements." The research found that companies with small or negative accruals vastly outperform (+10%) those with large accruals. It concluded that investors focus too heavily on earnings and not on cash generation and that the share prices of companies with high accruals are more likely to reverse in future years." Other shares in the screen include POLY, which i hold, and a few other immediate recognisables, such as PLUS, CWK and PFD.
purchaseatthetop: stoxx67...thanks! interesting day. started really badly with MCRO, SAGA and AGL dropping. I added on both MCRO and SAGA with the dip and now all have recovered with SAGA nicely blue. Matter of keeping the fundamentals in sight and not being rattled by drops - seeing them as good opportunities. Sorts out the investors from the gamblers.
dr knowledge: Good, if somewhat muted analysis from the brokers starting to emerge........... Numis reiterate their £6.50 target but believe the momentum and scale of the AWS deal will become a meaningful contributor to the group's revenue ambitions. “We are not changing our forecasts, and we don't expect any material immediate effect on revenues, but we view this agreement as very helpful in raising the credibility of the path of longer-term revenue improvement.” Goldman Sachs stick to their £600p price target but add that the success of the partnership poses "upside risks" to the City's revenue forecasts. (upside risk - lol). More to come, but for me the agreement significantly DE-risks MCRO (which will appeal to institutional investors) and if we can all be a little patient, soon as the impact of the AWS deal hits the balance sheet, we will see upwardly revised forecasts en-masse. For the meantime though happy with a short term target of between £6.6.50 after which, the world could well be our oyster. We await with bated breath Barclays revision. ;-)
dr knowledge: SINZU - decent?? ;-) MCRO has been viewed by some as a non-growth stock (all talk to date being on halting revenue declines), yet in the stroke of an RNS we are looking at an ultra conservative 10% increase in revenues - tie this in to the 3yr turnaround plan and very soon, Bob will most definitely want to be your uncle. ;-) Worth reiterating........ "Material often means 10% or more in City guidance speak, so investors can probably expect a minimum of $300 million, based on last year's $3 billion total revenue, and quite possibly a lot more."
dr knowledge: Superb update + initial analysis from AJ Bell just published....... "Infrastructure software firm Micro Focus (MCRO) has announced a commercial deal with Amazon Web Services (AWS), the world's leading cloud enabler. The agreement will see the pair work together to help large organisations with to modernise their applications and allow to make the jump into the AWS Cloud ecosystem. ROUTE TO THE CLOUD This is big news for the UK company and investors were all over Micro Focus stock in morning trading, sending the share price surging 17% to 510.6p, pushing the value of the FTSE 250 business beyond £2 billion. But investors haven't seen anything yet, if the real value of the AWS deal can be successfully tapped. AWS is clearly setting its sights on public sector organisations and big corporates juggling large and legacy IT stacks that have been built-up and bolted together over years into unwieldy monsters. Think banks and other financial institutions, or welfare benefits departments, for example. This is an open invitation to join the cloud party, that by using the IT modernisation tools of Micro Focus, large organisations with complex technology needs can be put on the road to AWS applications and the benefits that cloud implies; faster, cheaper and more flexible applications designed for today's digital world. HUGE REVENUE SCOPE That Micro Focus has issued warrants to the tech giant’s investment arm to subscribe for up to 15 million shares at 446.6p each is also telling. These warrants will only be triggered in full if AWS is able to put meaningful business Micro Focus' way, or 'deliver a material impact' on revenues. Material often means 10% or more in City guidance speak, so investors can probably expect a minimum of $300 million, based on last year's $3 billion total revenue, and quite possibly a lot more. 'The modernization of mainframe applications and workloads into cloud environments is increasingly becoming an imperative in the digital transformation programmes of large enterprises worldwide, and this collaboration has the potential to drive new customer adoption and growth within our Application Modernisation and Connectivity (AMC) product group for an extended period', said Micro Focus chief executive, Stephen Murdoch"
planit2: Dr Knowledge, you have kind of highlighted the problem here and is was one of the main things that attracted me to MCRO in the first place. The thing is that tech investors want growth Yield investors want yield. MCRO managed to drive away both of these groups of people. I can't see any tech investors wanting to invest whilst there is declining sales revenue we are a long way off attracting this group back. The yield investors could come back now but they are not a quick bunch in general and there are other stocks out there with higher yield and much lower risk. The goodwill write-downs don't portray huge confidence in the future so the value investors might wait a while whilst things stabilise so they know it is not a value trap. In the mean time we will have to wait. Does anyone have an idea of when the next update will be? Last year there was a debt update but that won't be needed this year.
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