Micro Focus Share Discussion Threads

[montyhedge] 07/9/2020 08:07

Should bounce quite nicely, rns last week very positive, plenty of cash, trading update is due November, I have no doubt dividend will be resumed. So income investors who shunned Micro will be back in droves.

[fjgooner] 04/9/2020 23:12

All good tech stocks have had their massive run up and are now well overdone.

[sr2day] 04/9/2020 16:55

monty to shut up.lol.

[pineapple25] 04/9/2020 16:52

Joined here today to add my two-pennorth to the somewhat unreliable debate on this thread. Very strange price action here; RNS says 'strong cash generation' and paying down debt, and the shareprice goes down! P/E is currently 1!! For a profitable cash generative business in what has been a very bouyant sector. Either MCRO is an undiscovered gem; or shorters are manipulating the price down; or there is something seriously wrong with this firm and it's about to go bust. Given the debt paydown (albeit small), I'm guessing it's unlikely to be the last one, but I'm mystified at how this share keeps bumping along in the 280s having lost 90% of its value in a year. Next set of results seem to be a long way off. What will it take to turn this around?

[montyhedge] 04/9/2020 08:00

It was the correct and prudent thing to do after announcing 58.33c dividend then pulling it last minute. Shareprice got hammered. But in hindsight best thing to do. Dividends will resume next figures. Plenty of cash.
Trading update November.

I think you won't see them below 300p again once they start moving, that was a very positive announcement the other day. Of course only my view.

[clunes100] 04/9/2020 07:49

The non payment of a dividend has made the balance sheet stronger which is surely good news and allowed the repayment of some debt. The cash and long term management of debt facilities combined with cash generation and a low sp, also increases the possibility of a take over - potentially good news. I know MCRO has been seen as dividend/income share but short term the BoD's quick actions post Covid have strengthened the company and made it more resilient to market or virus shocks. In time, I hope the dividend returns but based on a sound balance sheet. What we need is further good news in terms of new contracts, decent sets of figures, along with director buys, buybacks and revival of the dividend which will all help the share price

The US Tech stock sell off is a concern although the us price is still 2.75% above the UK price even after a fall yesterday, there could be a negative effect today as we go into the weekend but again that depends on the markets understanding of MCRO's business model which is based on embedded software and long term contracts, hence the decent cash flow. Money coming out of shares usually needs somewhere else to go let's hope that yesterday's RNS encourages it in this direction!

[montyhedge] 03/9/2020 22:02

Today's rns best news for nine months. The dividend of 58.33c that was pulled last minute because of coronavirus uncertainty, to me is nailed on next set of figures, could we have a special dividend to make up for the pulled dividend has well.

[dr knowledge] 03/9/2020 21:00

Yes, but it is typical that the very day the FAANG+ takes a long overdue hit alongside the TECH100 (which has risen like a shooting star up to today), MCRO releases its first snippet of good news. We never followed either up, but we sure as hell followed them both down! The news will sink in, but sometimes I do think we are simply cursed! Sorry for triplicate post - connection issues as I am in Greece! ;-)

[alex4141] 03/9/2020 20:19

Well, the NYSE FANG+TM Index, which includes the five core FAANG stocks, shed 6.2% today, putting it on track for its biggest one-day decline since March 16. Hope some of these withdrawn investment monies would be allocated to Micro ;).

[montyhedge] 03/9/2020 20:19

Very encouraging rns, I'm convinced the dividend on its way back.

[planit2] 03/9/2020 16:54

@Ngen

Have you accounted for the $150m that was used to reduce the debt in the May refinance?

[ozzmosiz] 03/9/2020 16:24

Order filled too :)

[ozzmosiz] 03/9/2020 16:23

Gap filled

[sr2day] 03/9/2020 15:21

your gap or monty,s? lol.

[ozzmosiz] 03/9/2020 15:09

Not sure why this is heading down. Going for the gap perhaps?

[boozey] 03/9/2020 12:42

Would love to see some Director buys too. In particular it would be good to see Robert Youngjohns dip his toe in. Greg Lock must be wishing he stayed at Computacenter which is going great guns. I wonder if Lock bothered to look under the covers before he spent a million pounds when he joined MCRO or simply had blind faith. Either way he is sitting on a hefty loss for now.

[ozzmosiz] 03/9/2020 11:42

Deferred payments due to Covid crisis?

[ngen yap] 03/9/2020 11:38

I posted last week about my assessment of Micro position. Today's news is welcomed. However, I am a little surprised with their cash position as at 31 August. Even accounting for the $175m repayment, it shows cash inflow for the 4 months to be circa $75m only, versus FCF in excess of $300m in H1. This may be due to working capital needs, timing and hopefully not, more client deferrals. Thoughts?

[gerardp] 03/9/2020 11:07

Get the debt down to 2.7 times adjusted earnings before paying any dividend. (Currently 3.5)

Also, bring back the quarterly reporting.

[montyhedge] 03/9/2020 09:46

Of course Micro been shunned by the income investors ever since they deferred the dividend, they will be back in droves.

[montyhedge] 03/9/2020 09:40

Plenty of cash, dividend is nailed on.