Micro Focus Share Discussion Threads

[montyhedge] 01/5/2019 15:52

Always messy. Don't like these consolidations.

[ali47fish] 01/5/2019 14:29

why is the share price down for the second day? what 's causing this?

[damonbrooks45] 30/4/2019 15:04

Ah ok, thanks for the swift replies. Looks like the £23.16 was the change price they used last night when changing down my shares to 1419

Looks like this is going to take up to 5 days. My broker isn't great at response, I always get a call centre unless I demand back office.

Any decent UK based broker with decent array of instruments to L/S? Thinking Interactive Brokers

[dynz] 30/4/2019 14:38

My broker tells me that it is going to take five days for them to reconcile the consolidation before I can sell shares. Seems a tad excessive to me.

[ugandalad] 30/4/2019 14:28

Yes this is basically a timing issue with one half of the event completed the accounting and the capital sale in process. Should all b3 clear when the B share sale proceeds arrive.

[sogoesit] 30/4/2019 13:43

You had 1711 and, at consolidation ratio of 0.8296 you then have 1419 post consolidation - CORRECT.
Who is selling you shares at £23.16 when you can buy the shares today at about 1940p?
Maybe you forgot that you will have £4767 at £3.3586 per original share?

[damonbrooks45] 30/4/2019 12:02

So I had 1711 shares at share price average of £19.21, Since the buy back was executed this morning my account is now showing 1,419 shares but my buy price for these is £23.16??

This seems very very wrong. Could someone please explain, Thank you.

[damonbrooks45] 17/4/2019 21:02

Cheers pal. All the best.

[woodhawk] 17/4/2019 19:47

29th of this month.

[damonbrooks45] 17/4/2019 18:19

Is there a cut off date to be eligible to receive payments in respect of
the proceeds from the B Share Scheme/Return of Value?

[sogoesit] 17/4/2019 12:24

Benefits to shareholders:
- income tax avoidance
- choice (company doesn't need cash so lets you put the cash to work elsewhere or, if you are minded, re-invest the cash in the company)
- share price is neutral to positive (with less cash sitting on the balance sheet, doing nothing, gearing is changed and capital more efficiently applied)
- EPS (and DPS) will be improved/higher in the case where cash is not earning any return.
Not all shareholders will agree all benefits of course.
For the next to last point see SSPG which does the same and PSN, which used to but doesn't any more.
For a long term holder I think the benefits outweigh whatever others may see as disadvantages.
AIMV

[daveydave] 17/4/2019 11:29

How does the return of value benefit shareholders besides not being a capital return rather than income? It's basically forcing a 'sale' of shares at the current market value is it not? You get some money upfront now, but unless you buy back in again you miss out on any share price increase in the future. I suppose you don't miss out on future dividend return value since any dividend is split between fewer shares.

[umitw] 17/4/2019 10:22

Sorry for the typo! -:)

[umitw] 17/4/2019 10:14

Well al OST hot my target for purchasing!:-)

[mrthomas] 17/4/2019 00:57

Thks very much for this explanation now the question is whhen do I go back into the market to buy new shares so I back to 10

Is it worth while or not interesting as been in and out of this share over the years

I rather they just pay dividends then do this buy back

[philms] 16/4/2019 18:02

MRThomas
Company has announced that Return of Value will be between $4.33 and $4.39 per Ordinary Share and that they will announce US$/£ exchange rate for Return of Value by 7.00 a.m. on 26 April 2019.

Let's assume the exchange rate is $1.3046:£1 (current rate) and Return of Value is the mid-point of the range at $4.36 per Ordinary Share. That will be £3.3420 per Ordinary Share ($4.36/$1.3046).

For your 10 Ordinary Shares you get 10 * £3.3420 = £33.42 from the Return of Value.

The Consolidation Factor is 0.8296 so you would get 10 * 0.8296 = 8.296 New Ordinary Shares, however, no fractional entitlements will be issued so you get 8 New Ordinary Shares. All of the fractional entitlements are aggregated together and sold in the market with the net sale proceeds being distributed to shareholders with fractional entitlements.

A Return of Value of $4.36 per share would mean that there were 412,844,037 Ordinary Shares in issue at the B Share Record Date ($1,800m/$4.36) and assuming a share price of £19.4050 on that day then market cap would be £8,011,238,538. The Return of Value would be £1,379,724,772 (412,844,037 * £3.3420) so market cap should decrease by this amount to £6,631,513,766 and the shares in issue will also decrease to 342,495,413 New Ordinary Shares (412,844,037 * 0.8296) due to the Share Consolidation.

Based on these numbers the share price for each New Ordinary Share should be £19.3623 (£6,631,513,766/342,495,413). Assuming the fractional entitlements are sold at this share price of £19.3623 then you'd get a cheque for £5.73 (£19.3623*0.296) for your fractional entitlement.

[damonbrooks45] 16/4/2019 00:14

Meant £3.39 GBP converted from the dollar equivalent.

[mrthomas] 15/4/2019 13:36

Could someone explain to me in plain English if I have 10 shares as a result of the consolidation how many new shares will I have and how much cash will be returned to me

Would be much appreciated thank you very much indeed

[sogoesit] 10/4/2019 14:10

Post 5133: hope you’re expecting more than US $3.39 per share or you have the wrong currency.

[damonbrooks45] 09/4/2019 22:07

3.39$ per share in return of value, paid on May 13th + new share capital consolidation coming in at approx/prob just about £19.16 GBP. This is an absolute winner.

Will be buying any dips I can on lead up to April 29th.
GLTA.

[rochdae] 05/4/2019 14:04

The problem with citi is that they still believe the HP integration won't succeed. But all the evidence suggests the opposite.

How can you write 'sees ongoing business revenue declining more than consensus' without any facts.

Anyway, the market will price this much higher..imo

[azure8269] 05/4/2019 06:21

As MCRO have confirmed their year figures citi's target of 1700 gives a P/e of 7.66.


It beggers belief how they can even print it let alone advise their passive clients, still at least its a buying/top up opportunity

It makes you wonder why we are not all on the forecasting gravy train. Looks like they need the share to be lower for some one.

[woodhawk] 04/4/2019 20:03

Pity you missed out on a nice profit in the meantime. Top sliced mine at 2077p yesterday.

[umitw] 04/4/2019 18:19

Well, well I see that share price is coming down to where I expected to be!

[rochdae] 04/4/2019 15:51

Raises target price by 500. Got it wrong there citi!