Micro Focus Share Discussion Threads

[hamhamham1] 03/8/2020 11:49

If your average is 400 to 500p, and if its back t9 those levels well done :)
What's your average, Dr No

[ozzmosiz] 03/8/2020 11:38

Obvious ham is sp2day

[dr knowledge] 03/8/2020 11:36

Bet away then come back and see me 6 months hence & we'll compare notes. ;-)

[hamhamham1] 03/8/2020 11:29

What's your average here then?
I bet you all in on this one share ;)

[dr knowledge] 03/8/2020 11:14

Oh dear...........Ham (spam?)

1. Mirco focus is a software and information technology company, Softbank is a Japanese multinational conglomerate holding company - the two are legions apart in strategy, form & function - you obviously have no idea as to Micro's business model. ;-)

2. "Acquisitions are fine when money is plentiful" - apart from stating the beedlin obvious in mega-basic, generic terms, in business terms market weakness tends to unlock value and drive M&A activity - the rumours are already abound that if MCRO remains anywhere near these depressed levels it will be subject to that very same M&A activity. ;-)

3. "investment banks employ specialists to study firms" - at least that one made me laugh out loud (there was me thinking they picked stocks at random!). That said using your primary school analysis, all (without exception) of these "specialists", brokers & banks have target prices for MCRO that are well in excess of the share price today (the minimum being Goldman @ 345). ;-)

[hamhamham1] 03/8/2020 10:54

Sp on the chart is currently supported by Aug 2005 highs in the 270s.
If that breaks, down to 200p area.

[hamhamham1] 03/8/2020 10:51

Clunes. it seems to me that Micro is trying to be a mini-Softbank, acquisitions are fine when money is plentiful and you buy well, but when the economy turns south, you can be left with large debt, a few wonky buys and having to sell any good ones to try and pay down your debt.
There is a reason, why tech investors haven't piled in. It is reflected in the price what they think.

[clunes100] 03/8/2020 09:32

Simplistic view - ham1

Yes the write off is a signal of some contraction but given current pandemic, this is not surprising and you could argue the BoD has been prudent regarding the non payment of the dividend.

However, the MCRO business model involves a lot of long term customers with on-going contracts and it appears MCRO are continuing to acquire other businesses. The company is developing 500 new products a year for its customers.

So yes these are difficult times but the company is spinning off cash, more than enough to service its debt and pay a dividend and it will continue to do so because of its service contracts, product development and winning or acquiring business.

[hamhamham1] 03/8/2020 09:01

Cheap doesn't mean good.

[hamhamham1] 03/8/2020 09:00

Look, investment banks employ specialists to study firms, if the share price is going down, that's because the consensus is that it's overvalued. If it had growth, it would be flying like the NASDAQ shares, but it's not, so what does that tell you?

[dr knowledge] 02/8/2020 22:01

and acquiring.......

[ozzmosiz] 02/8/2020 19:20

And still recruiting

[montyhedge] 02/8/2020 17:06

No gov money, no staff furloughed.High margins, free cash flow other companies would die for. They just Kitchen sinked everything.Paying a 53.3c dividend, but prudent thing to do pulled it last minute, I call that sensible,Onwards and upwards.

[clemoc] 02/8/2020 15:44

I'm guessing you guys don't keep up to date with LSE RNS?
Debt re financed until 2024 and dividend withheld this year to strengthen balance sheet.
Micro focus are currently buying businesses to re shape the future and are winning business globally.
RNS will out soon with updates on progress, wake up guys and at least discuss facts please....

[enormouswillie] 02/8/2020 14:06

It may not get a rights issue away or get rescued from its debt mountain and that means it could go into administration

[montyhedge] 02/8/2020 13:49

Lol your probably right.

[gerardp] 02/8/2020 12:27

HP were looking for revenge after being stitched up by Mike Lynch. I bet they could not believe their luck when they came across the UK's version of Laurel & Hardy -Loosemore & Murdoch.

[bookbroker] 02/8/2020 11:54

And a massive right down of intangibles coming!

[bookbroker] 02/8/2020 11:53

This will either launch a heavily discounted rights issue, or failing that it will go bust, grossly overpaid for the HP business, and it does appear as though it is coming right, or maybe already obsolete. Whatever the case their short term debt load is way too high.

[montyhedge] 02/8/2020 11:42

The Grim Reaper has spoken, more doom and gloom, I suppose. I don't know because I filter the Reaper months ago. Lol