Micro Focus Share Discussion Threads

[philms] 04/10/2019 12:43

For the 18 month period end 31 October 2018 the company paid a dividend of 151.26 cents per share equivalent to 100.84 cents for a 12 month period. At GBP:USD of 1.23 that's 81.98 pence per share. At current share price of 1057 pence that would be a yield of 7.75 percent of the Company maintains the same level of dividend.

[squintyflinty1] 04/10/2019 10:55

The dividend is over 11.25 %

[montyhedge] 02/10/2019 16:22

Fuji
whats looks cheap can get cheaper. Its an ex growth company.

[fuji99] 02/10/2019 15:36

Interesting. MCRO could get rid of low margin business segments.

[fuji99] 02/10/2019 15:10

With a PE ratio of just over 6, this is now very cheap for a technology company of this size.
Very oversold when one compares it to the likes of SGE, CCC or SCT with PE ratios over 24, 17 etc.

[bigbertie] 24/9/2019 15:57

here is my guess at explanation.

after profit warning the shares fell below 1100. during Sept MCRO bought back about 4m shares, but there was also a major buying spree by Dodge & Cox [US mutual Fund] who bought about 6m shares to take their stake to over 17%. My guess is that D&C buying is the cause of the share price rise and that they have stopped buying so the share price fell back to near the 1100 mark.

I don't know for sure that D&C have stopped - there could be another RNS any day.
But if they have, and if you thought the shares were good value at 1100 a few weeks ago then they are probably still good value now.

just my thoughts - good luck

[mattcookson] 24/9/2019 08:37

Can someone please explain to me, if the company has been buying back on avg mammoth ~£3M worth of shares per day for the last few days, how the stock price went ~6% down in the last 2/3 days? Surely, it all based on supply and demand and if company is buying that many shares per day, there is more demand than supply??

[dime] 16/9/2019 08:43

Shake up time?

[philms] 06/9/2019 15:15

The dividend will be paid in Sterling equivalent to 46.66 pence per share, based on an exchange rate of £1 = $1.25, the rate applicable on 8 July 2019, the date on which the board resolved to pay the dividend. The dividend will be paid on 30 September 2019 to shareholders on the register as at 6 September 2019.

[umitw] 06/9/2019 13:08

Payment day 30th of September

[g2theary] 05/9/2019 08:23

What was the dividend in pence here today?

[umitw] 03/9/2019 08:06

Thank you for your analytical view, better then some gloom boosters here!

[gabsterx] 03/9/2019 06:58

I don't have a position in MCRO but looking at the fundamentals things do not seem as catastrophic as they share price is reflecting.

- Strong FCF that can more than support the dividend which is at a very attractive 9% covered twice by earnings
- Strong balance sheet, net debt/ebidta stabilizing at 2.7
- EBIDTA margins of 40%+
- Sales declining mostly due to HPE exodus, maintenance fees decline is the bulk of the revenue and falling much slower than other segments
- Very low fw PE at 5.5
- DCF using conservative measures even with negative growth rates suggest a fair valuation of 15.5 GBP, implying a 30% margin of safety


From what I see (and I may be wrong) the collapse in the price is due to shareholder exhaustion after the barrage of profit warnings and uncertainties around the HPE integration. IMO these concerns are well prices in and I see MCRO as a deep value play that comes with some risks but more upsides.

Any long term holders' opinion on the above thesis more than welcome :)

EDIT: Drank my own Koolaid and bought some 200 shares, might go down further from here but let's see as I'm holing for the long term.

[noirua] 02/9/2019 13:40

These falls often go to low levels that seemed impossible earlier. The share is a gamble and thoughts it will be thrown, eventually, out of the Footsie 100.

[computercoders] 31/8/2019 10:29

Isn't it ex divi this Thursday and about 4% yield?

[shaker44] 30/8/2019 11:05

For me, before buying I like to feel I can trust the management. But I dont trust them even at this price. Hope I am wrong. Gla

[montyhedge] 30/8/2019 10:51

I was hoping to cash in and buy at 995p, the mark down was overdone big time.

[andrewbaker] 30/8/2019 10:48

The drop is too overdone: time to top up. I don't generally like to average down (and have bought at less on the last big drop), but here it's worth doing. Sure, old legacy business will mean continued turnover falls in that area, but that's allowed for in the price, IMHO.

[dealy] 30/8/2019 09:05

a 32% drop yesterday on an already weak share price was the peak of insanity. I read that the profit impact is about 17m USD. Hardly justified a 1.5 billion market cap drop

[g2theary] 30/8/2019 08:26

Helps the share buyback the fall yesterday :)

[chinese investor] 30/8/2019 07:49

montyhedge (MCRO) 21 Dec 2017 - 13:05:13
I'm expecting another bumper dividend on 8th Jan.

montyhedge (MCRO) 29 Dec 2017 - 09:06:13
I’m looking for 3125p in 2018.

[montyhedge] 30/8/2019 07:41

I had these. Sold at 2535p, analyst we're saying 4000p a share.I may get back in under 1000p, still a very good business.But when the director sold shedloads in July, that was the bell ringing moment to sell. Under 1000p, I will dip a toe.

[silverfern] 29/8/2019 22:12

I rarely post as non holder but watcher here but made good money a couple of years back. However why dont people who really believe the 8% fall is sod all check out the ratio of operating profit (or the reconciliation between Operating profit and Adjusted EBITDA as the company puts it) then decide? But I guess you all have; you come over like detailed researchers.

[dealy] 29/8/2019 18:07

over reaction today. mild change in revenue in a difficult environment.

[montyhedge] 29/8/2019 16:22

He should be investigated for that sale.