Micro Focus Share Discussion Threads

[dplewis1] 16/9/2020 10:41

Normal service resumes here I see

[montyhedge] 15/9/2020 13:32

dple
I think they are good. They are forecasting earnings increasing over 100% that will do me, lol.

[dplewis1] 15/9/2020 13:18

That is a junk website monty. Good to see this recovering since the dip this morning though, probably helped by strong NQ futures

[montyhedge] 15/9/2020 12:58

Simply Wall Street have Micro 69.7% below fair value.

[alex4141] 15/9/2020 10:47

Agreed with @Clunes100. @sr2day - the senior management team has repeatedly hinted that it is now in the striving mode versus the surviving mode in the beginning of Covid-19 pandemic. So further impairment announcements would be inconsistent with this message:-). Also, there were a few cool tech developments announced by micro on AI and hybrid cloud computing that should retain and attract new customer base following covid-19 accelerated digital transformation. At the current share price level, the take over is certainly more likely than micro dissolution.

[clunes100] 15/9/2020 09:53

Dipped in again this morning and bought a few.

Microfocus is not going bust anytime soon, takeover more likely the longer the share price stays down. With all MCRO's customers, long term contracts and free cash generation, plus debt reducing and managed to 2024, my money is long on a share price recovery, just need the news to push it along. The last rns was helpfully positive but with out continual or substantial good news there will be the tendency to for share price drift.

[montyhedge] 15/9/2020 08:45

The boys are still short 3.84% will they increase.https://shorttracker.co.uk/company/GB00BJ1F4N75/

[sr2day] 15/9/2020 08:39

if you are greedy you should wait for 271p.then you will save £5 on your 100 shares order.lol

[montyhedge] 15/9/2020 08:25

Your make money, I'm being greedy waiting for 276p.

[dplewis1] 15/9/2020 08:24

Gone long again this morning 279p on spread

[montyhedge] 15/9/2020 08:23

Read the last rns, plenty of cash paying down debt. The interim dividend they pulled last minute was 45p Sterling. I reckon half that for the final. Easily afford that, yield around 8%.Micro been the paying dividend share last 10 years. Soon be back on track.

[scepticalinvestor] 15/9/2020 08:08

mngt really need to get an update outII's, like pi's, must be seethingthe mkt is voting that this is going bust

[scepticalinvestor] 15/9/2020 08:07

as you should be good man!

[clunes100] 14/9/2020 19:37

The likelihood is that if the dividend had been paid out, we would be looking at a lower share price now. Just need some good news.

[montyhedge] 14/9/2020 16:02

Dividend is nailed on for the finals. Income investors who shunned Micro and don't blame them, when the last minute Micro pulled the interim of 58.33c, they will be back in droves.But in hindsight it was the right thing to do.

[sr2day] 14/9/2020 15:48

lets hope your guru is right.but i am sceptical.

[clunes100] 14/9/2020 14:57

If there are no more major nasty shocks and we get a stream of good news such as profit and cash generation in the results, reinstatement of a prudent dividend whilst demonstrating a sensible paying down of loans, along with contract wins, cost reductions, director's buys, share buybacks and even takeover bids - we should be in for an interesting ride.

The Guru article says it all, the fact is that MCRO starts paying a dividend again, many punters will return and even if the share price were not to respond, where do you put your money to get some sort of decent return? This business has customers, long term contracts and generates significant free cash. There are many businesses that have swallowed a bad acquisition and most eventually recover and often stronger after rationalising their business.

[sr2day] 14/9/2020 12:34

it it get to 240p it is time to bail out completely. massive impairment regarding previous nonperforming acquisitions .will be extremely generous and irresponsible if they reinstate dividend.

[scepticalinvestor] 14/9/2020 08:26

all the bad news, everything is basically priced jn here.the continual drop points to the mkt assuming this is going bankrupt.I don't like the massive debt but it is looking interesting - and I am sure there are many predators circling who think the sameif it gets to 240- 50 then i think its worth to splash out.

[clemoc] 13/9/2020 09:17

The whole article link is posted on the other board

[clunes100] 12/9/2020 15:14

Alex, good find and sums up current position well, it is up to the management to deliver from here.

A prudent reinstatement of the dividend will help with expectation of dividend growth going forward whilst paying down loans and any right-offs, plus maintaining decent cash reserves. Although the latter will increase take-over attractiveness until the share price gets a bit higher.

Still waiting for other interim good news such as director buys, share buybacks, award of contracts, further down payment of debt and lots of other good news. Roll on next set of results which had better show a profit as well as sustained cash generation.

All in all, a reasonable punt with limited down side. DYOR

[montyhedge] 11/9/2020 18:43

Don't waste your time posting me, your filtered, can't see what you posting, not interested.

[orange1] 11/9/2020 18:28

Nailed on that montyhedge will continue with his constant stream of gibberish and random numbers. Trading statement on 28 August? Nailed on.

[montyhedge] 11/9/2020 18:17

Good find, dividend nailed on for the finals.

[alex4141] 11/9/2020 18:12

Quoting from gurufocus: “A company that can generate £402 million in free cash flow and is being valued by the market at only about £975 million is, in my opinion, being mispriced. This is a free cash yield of over 40%.“