Micro Focus Share Discussion Threads

[clemoc] 28/8/2020 07:32

Ngen. Great post thank you for the numbers and detail well worth a read about 8 posts down.

[ngen yap] 27/8/2020 16:09

Didn't Causeway Capital jump in recently, quite substantially? Look them up.

[hamhamham1] 27/8/2020 14:51

A blue finish would be smashing ;)

[sr2day] 27/8/2020 14:01

monty,i leave the fortune for you and your followers.

[montyhedge] 27/8/2020 13:58

CEO won't buy he sold 5m pounds worth last year, what I can remember. Still got share options I suppose.

[watfordhornet] 27/8/2020 13:46

This is pants. Need to come out and update or buy a chunk of shares themselves. I am well aware the directors bought previously but that was a while backReassurance now would be good

[montyhedge] 27/8/2020 13:35

If he shorted he would of made a fortune, it's a shames he hasn't.

[scepticalinvestor] 27/8/2020 13:22

sr2 really has been on the money here, well done.

[gerardp] 27/8/2020 13:14

Another big software deal of the week gave the London market’s tech credentials another much-needed boost.

The £854 million deal involving a combination of language translation firms RWS and SDL will create a business serving the top 10 pharmaceutical companies globally, plus many of the major US West Coast tech businesses.

It comes a few days after FTSE 100-listed Aveva agreed to buy California’s OSIsoft in a move establishing it as key player in engineering software and the industrial internet of things.

[montyhedge] 27/8/2020 13:13

I hope not tomorrow, companies tend to come out on a Friday with bad news before a long bank holiday weekend, hoping investors miss it, lol.

[montyhedge] 27/8/2020 12:13

I haven't thought I wait until update.

[sr2day] 27/8/2020 12:06

too simplistic and not prudent to annualise figures based on results for six months ended 30/4/20.the full impact of covid will be felt in the second half and prudent to wait for the full year figures.then maybe will be the time to invest or add.otherwise avoid.if it is really cheap don,t you think that the institutions would have piled in.less than 200k shares traded today so far.

[hamhamham1] 27/8/2020 11:49

Old guidance will not be met, but share prices can react positively to 'not so bad as it could have been' news.
Time will tell if I went too early or not, ho hum :)

[watfordhornet] 27/8/2020 11:48

When did you buy again Monty? Yesterday or this morning?

[montyhedge] 27/8/2020 11:42

If there is a trading update, some say tomorrow, it's not rocket science revenue forecast will be down has companies hold back due to uncertainty of coronavirus and I reckon full year guidance may not be met.We all probably know that, but surely baked in at this price. Surely light at the end of tunnel is what shareholders want to hear..

[hamhamham1] 27/8/2020 11:34

SDL shows there is large appetite for software companies who have a future.
The whole of the EU severely lack software companies to invest in, already wirecard left a hole.

[hamhamham1] 27/8/2020 11:30

I have just added (doubled) my stake here, below 300p.
Price is cheap enough that I don't have to wait for tomorrow.
Famous last words :)

[dr knowledge] 27/8/2020 11:23

Watrfordhornet - I too can't see a return to divi this year(although it would be nice) but I'm not sure they will look to reduce debt either anytime soon having very recently refinanced. They know the divi will herald the return of institutional investors whereas with the debt they have until 2024 and have more than enough cash-flow to service it. I still maintain that the slightest whiff of good news will see this flying & with all the non regulated news they've been publishing on a daily basis recently I can't imagine any scenario where the share price will see a 30% drop. ;-)

[watfordhornet] 27/8/2020 11:14

Agree with post except for would happily forego a divi for more debt reduction given all the unknowns out there

[dr knowledge] 27/8/2020 11:03

Ngen - At LAST! Someone here who understands the fundamentals of listed company valuations & debt serviceability - was beginning to think this was the Bingo thread with all these plucked from air numbers (200, 150 tc, etc). ;-)

[dplewis1] 27/8/2020 10:52

I agree I think it's a good buying op which is why I'm long. I've also never seen you post before and I have to say you have restored my faith a bit as most of what people say on these boards is absolute nonsense.

[montyhedge] 27/8/2020 10:50

Also Micro Focus was always a great dividend payer, so for now it's been shunned by income investors and income funds.They will be back, once the dividend resumes.

[montyhedge] 27/8/2020 10:43

Totally agree, good post.

[ngen yap] 27/8/2020 10:41

I have read and re-read the interim results. The biggest risk factor is the decreasing sales numbers across all divisions, although it would appear management have / are implementing corrective actions to arrest this decline.Notwithstanding above risk, the company reported EBITDA of $552m and free cash flow of $305m. Annualising this makes it $1,104m and $610m respectively.Even if we take 10% further falls, we are talking about circa $1,000m EBITDA and $550m FCF.On a simple valuation approach, and taking a multiple of 10, we are talking about $10bn valuation. Take net debt off and we are still a $5bn+ equity value. That's TREBLE the share price value today!!And with FCF of $550m, they can well afford to pay a healthy dividend. I am talking well in excess of 40p.Debt fully refinanced with the nearest maturity in 2024.So, this must represent a good buying opportunity. Thoughts?

[montyhedge] 27/8/2020 10:38

Yes, let's hope not like last year shareprice down 30% in a day.