Micro Focus Share Discussion Threads

[uncle andy] 04/4/2019 15:25

Citigroup downgrade is hurting us today.

* Citigroup downgrades British software company Micro Focus to "sell" from "neutral" as it believes the stock has run ahead of fundamentals
* Says over the mid-term, sees downside risks to revenue forecasts and margins relative to market expectations
* "The multiple appears modestly higher now, despite a more tempered outlook for the top line, and incrementally diminished visibility around the EBITDA improvement target" - Citi
* Says over FY18-21, see ongoing business revenue declining more than consensus, also adds shares are mispricing longer-term FCF potential
* Citigroup notes risks to its sell includes near-term dynamics including ongoing capital return and Brexit positioning, and potential long-term value crystallization from smaller growth assets embedded within MFPP (Micro Focus Product Portfolio) business
* Citigroup raises price target to 1700p from 1230p

[stoxx67] 03/4/2019 10:58

anyone on here use UPDATA ?

can anyone provide a Point & Figure upside target for Microfocus

many thanks in advance

[woodhawk] 03/4/2019 10:50

Thanks for the tax info, Sogoesit, but irrelevant to me as all my MCRO are ISA'd ;-)

[mrthomas] 03/4/2019 10:18

I have to say I'm not keen on the capital repayment I'd rather have a dividend but it is what it is

the question is for every 10 shares how many shares do we lose in the sense that we get the capital repayment because as a result of this it does reduce ones holding so in order to keep the same number of shares one have to go back into the market and buy the shares

[uncle andy] 03/4/2019 09:53

Thanks for the info, Woodhawk.

As you can imagine, I am more than happy!

[woodhawk] 03/4/2019 09:32

Paid on 13-5-19. Nice profit, Uncle!!

[uncle andy] 03/4/2019 09:03

When is the return of capital meant to take place? I bought in at just over £8 and am very tempted to cash out.

[sogoesit] 03/4/2019 08:31

Basically yes but it’s not a dividend since it’s not liable to income tax.
It’s a Return of Capital. It’s like you exchanging some of your shares with the company for cash. You have cash in return for having less shares. It’s a wash.
If you’ve been in MCRO they’ve done it before; it’s a distribution of capital.
Make sure you DO NOT declare it as income on your tax return!

[soundsplausible] 03/4/2019 08:04

~£3.35

[soundsplausible] 03/4/2019 08:03

Sogosit - so in short micro focus provides shareholders a dividend of ~£4.35 per share, then at the same time the share consolidation takes place. Shareholders get some cash in their pockets whilst seeing no change in the share price?

[woodhawk] 02/4/2019 13:28

You're the one still waiting for 1900p. LOL. You *really* don't get it, do you?

[umitw] 02/4/2019 13:06

Sogoesit worked out already! I think you don't get it.:-)

[sogoesit] 01/4/2019 23:08

Does this “add up”?
Say the share price is £20 then, pre-consolidation, the market cap is £8.208bn.
The distribution of $4.35/share (at £0.7679/$ = £3.34/share) takes place thereby reducing the theoretical market cap by £1.371bn to £6.837bn.
Dividing £6.837bn by the new number of shares (0.8296 x old number) gives a new post-consolidation theoretical share price of £20.08. Hey presto!!
(Which, given some rounding errors, is the intention of the consolidation exercise).
I am assuming you know the number of shares currently in issue.

[soundsplausible] 01/4/2019 17:04

Hi there, I just bought back into this having held then sold a few years ago. I am trying to get to the bottom of the SUSE sale. Since I run with automatic stop loss I don't want premature sale due to the new shares being issued. Am I right in thinking that for all of the shares in issue MF will be issuing 0.8296? This sounds great but doesn't add up. They also mention that the return to shareholders would be in the region of ~$4.35/share. These two do not align, what am I missing here?

[woodhawk] 01/4/2019 10:51

You really don't get this, do you umitw?

[umitw] 01/4/2019 08:32

So still time to buy in then!

[rochdae] 27/3/2019 14:05

Not selling a bean here till I get that return of value and then take a look at the next period of trading. Could easily accelerate from here if mcro have got the HP acquisition back on track.

[losses] 27/3/2019 08:40

I'm out at 1800...missed the last spike but done well after a bruising losses from profit earring last year

[sogoesit] 27/3/2019 08:26

Looks like lost my chance for further accumulation in the low 1900's.
Anyone any idea fair value pre-SUSE distribution?
(My guess £21-£22).

[mad foetus] 26/3/2019 09:02

Could get there this week

[woodhawk] 21/3/2019 16:25

Nope, it's heading for 2000p.

[umitw] 20/3/2019 22:38

It may come sooner then you think! :-)

[woodhawk] 20/3/2019 11:26

Good for you. Yawn. It was under 1900p within a day or so, you must have missed it.

[umitw] 20/3/2019 11:03

Ok I m ready to buy if it falls under £19.