Micro Focus Share Discussion Threads

[mrthomas] 05/9/2017 11:33

Thks much appreciated so will be busy day tomorrow will buy back the shares that have been given back to me in the next few weeks see what results are like

[enami] 05/9/2017 10:48

ringer HPE results due after market close in the USA so 9 p.m.



US West coast based firms normally report after market close.

[ringer12] 05/9/2017 10:31

What time is the news reported?

[kuss1] 04/9/2017 17:31

It's not revenue it's margins. And it's early days. Medium turnaround so another 8 months or so to go. Still very cheap here for a tech company.

[montyhedge] 04/9/2017 16:56

Tomorrow big day either up 50p or down 50p, HP quarterly figures, see what we bought. Hopefully revenue improving.

[daveydave] 04/9/2017 16:11

Not a bad article but I'd like the writer to explain how COBOL is obsolete. Clearly not a tech writer!

[maytrees] 04/9/2017 15:53

Interesting article in today's Telegraph part of which reads:

"In contrast to internet companies that are less than a decade old, it was founded in 1976 as a specialist in COBOL, a now obsolete programming language. It now helps companies maintain and update the “plumbing̶1; of their computer systems – the boring back-end that most of us only tend to notice when it goes wrong.

On Friday it completed the $8.8bn (£6.8bn) takeover of the software unit of Hewlett Packard Enterprise (HPE), the biggest purchase of overseas tech assets in British history. In a somewhat poetic twist, the division includes what is left of Autonomy, the British software company that cost HP billions in 2011 before fraud allegations and a colossal write down took the shine off the deal.

It gives Micro Focus a market value of some £10bn, pushing it into the FTSE 50.

The deal caps an astonishing rise. In five years its shares have trebled and profits are up from $182m in 2013 to $638m this year. It has not prioritised breakneck revenue or customer growth, as many tech companies do, but focused on profit margins and efficiency.

Growth has come through acquisitions, by spotting opportunities for companies that need turning around. This often means cutting staff numbers, as is expected at its newly-acquired HPE business in the coming months. The companies Micro Focus buys are often unloved and unwanted by their current owners – HPE has sold the struggling software business as part of its own turnaround plan – so are picked up without paying the premium that applied to many tech takeovers."

I bought a few as a consequence.

[montyhedge] 04/9/2017 13:50

Yes in a isa no problem, what about outside isa don't you pay tax? Capital gains tax?

[ugandalad] 04/9/2017 12:56

MontyH This has been done as a return of Capital so I don't see where the tax issues arise. Charles Stanley have reduced the tax cost of my investment by the amount of the cash return which I'm not sure about as I would have expected an agreed formula to indicate the cost of the transaction for capital gains purposes. As our holdings are in ISAs I'm not concerned.

[montyhedge] 04/9/2017 12:01

Yes plus you pay tax on that, unless in a ISA, seems crazy, should have been a special dividend.

With a special dividend at least we would have kept our original holding.

[losses] 04/9/2017 11:04

I knew this could potentially happen so sold most of the batches 31 Aug.Left one batch to see what would happen.1283 shares now showing 1187... is this correct anyone?Expecting £2155+ on 15 September?

[sogoesit] 04/9/2017 10:56

Yep, they've actually given me more cash! Lol!

[ugandalad] 04/9/2017 10:50

You get £1.68 for every share you held before the consolidation reduced your holding.

[losses] 04/9/2017 10:37

My broker messed up my shares just managed to get it sorted today.Do we get £1.68 fir each share we held on 1st September? I think this gets paid on 15th

[daveydave] 04/9/2017 10:09

This is a cash cow, funds must buy now. LOL.

[montyhedge] 04/9/2017 09:08

Tomorrow big day, update. Wonder why these hedgies are shorting?

[montyhedge] 03/9/2017 18:01

Wow, shorting hedgies increasing their shorts in Micro to 2.62%

[kuss1] 03/9/2017 10:41

MSCI inclusion tomorrow.
AGM
The HP figures will probably show revenue down but key is margin improvement. Margins seem to be improving 2% per quarter. Total group revenue 4 billion or so. If margins get to 40% that's 1.6 billion in earnings. Would make MF cheap as chips for a tech company....

[montyhedge] 02/9/2017 17:21

5th Sept big day, HP figures. Disappointed last time. See what happens this time.

[montyhedge] 02/9/2017 16:12

Yes Isa of course tax free, otherwise paying tax on our own shares, crazy.

[ringer12] 02/9/2017 14:40

MRThomas. That is an interesting viewpoint re buying back with the proceeds from the Special divi.

I have just done a quick calculation and find that if I had bought back at the final offer price yesterday of 2287p I would have ended up with the same no of shares as before give or take a few shares. So, as you say,if the share price were to go down next week
it would be possible to end up with more shares than before but in a much larger company with hopefully even bigger prospects.

On the other hand if the share price were to rise appreciably the quandary would be whether to buy more or be content with what you've got!

Having my shares in an ISA fortunately I do not have to worry about taxes.

[mrthomas] 02/9/2017 11:53

if you hold the shares in a SIPP or ISA the no tax on the share buy back but if you hols out side that you may have pay tax not 100 %.

my own preference is for a special dividend but it is what it is next week will be interesting to see the news on the new company and what happens to the share price

I will try and buy back in the numbers of shares that have been cancelled so that my total investment is the same. If the news is bad and the shares tank then one could actually be better off as you end up with more shares

this is an interesting stock and if on MSCI that will help a little as well.