Micro Focus Share Discussion Threads

[scepticalinvestor] 24/9/2020 16:34

trouble is this is down constantly - when the US mkt was up breaking records, and now even more so that the US is down.The mkt considers this a conplete dog for a number of reasons.But I dont share that perception hence buying in and adding recently. It will be bought out before long imo

[sr2day] 24/9/2020 15:29

losses, i was thinking this could happen but after last week rns reassuring on revolving credit and cash flows idoubt we will see 200p but if the nasdaq crashes you never know.anyway i have bought a first tranche.

[losses] 24/9/2020 14:44

Could be heading for 150-200 before 500.

[montyhedge] 24/9/2020 08:55

Last year it was July but that was a profit warning, no profit warning this year so normal update November, if they mention hint of dividend for February these will be 500p plus.The income investors and income funds who have shunned Micro will be back in droves.

[scepticalinvestor] 24/9/2020 08:50

yes - might see an update in Oct though

[montyhedge] 24/9/2020 08:49

Shorts are good for stocks, they have to buy back one day, don't always get it right the bears, in Tesla, some very big hedge funds have major losses.

[dr knowledge] 24/9/2020 08:41

Sceptical - "manipulated down to fill that large order?" - with over 3.7% of stock on loan & being shorted they can manipulate the share price with ease (especially as we follow events in the US from the previous night). One bit of good news (just ONE) from MCRO on revenues & this will reverse rapidly - we need shot of the shorters, simple as that!

[montyhedge] 24/9/2020 08:38

I'm glad 3.84% short position, because they have to buy back one day. Let's hope a positive rns comes along, trading update November. Finals Feb, I'm convinced with a reinstatement of a dividend perhaps the interim they pulled very last minute, that was 58.3c.

[scepticalinvestor] 24/9/2020 08:33

agreed - still large short interest but this really is the bottom now imo

[sr2day] 24/9/2020 08:30

no more selling here bar the shorters who must be reviewing their position atfer MCRO reassured on liquidity and cash flows.

[montyhedge] 24/9/2020 08:24

Initial mark down, market makers anticipate selling, few sellers then should bounce during course of the day.

[scepticalinvestor] 24/9/2020 08:23

manipulated down to fill that large order?

[scepticalinvestor] 24/9/2020 08:17

also added at 253you still holding dp?

[scepticalinvestor] 24/9/2020 08:14

yes, large mark down on openstill holding though - this swings quickly

[montyhedge] 23/9/2020 20:03

Some analyst think 1.20 dollars to the pound, do wonders for U.K. dollar earners, even helps Micro Focus.

[watfordhornet] 23/9/2020 17:37

Was not just MCRO. At one point it looked like a great day but everything dropped this PM

[sr2day] 23/9/2020 15:04

i think this has bottomed out.don,t tell monty i am in.now just need the shorters to throw the towel.

[sr2day] 23/9/2020 14:17

premarket price 281p in US.

[sr2day] 23/9/2020 14:12

another raging gift horse is lloyds bank at its current price.

[enormouswillie] 23/9/2020 14:06

I think we could say it was a potential value trap at 10 quid especially with the benefit of hindsight but at its current price now, it’s a raging gift horse imo

[hamhamham1] 23/9/2020 13:35

Conclusion

While Micro Focus is facing huge challenges due to its continuing difficulty in integrating the Hewlett Packard assets and collapsing top-line, it's a high cash generative business. With a huge free cash flow yield and decent credit position, it has some time to get its act together.

If it does, the stock could be a multi-bagger. If it does not, the company could be an attractive acquisition target. The stock is selling at a very low valuation. Fund manager Dodge & Cox, known for their long term perspective, own over 15% of the outstanding stock with an estimated cost basis of over $30. They seem to be holding firm even in the face of massive paper losses. Causeway Capital Management LLC (run by Sarah Ketterer (Trades, Portfolio)) owns over 5%, though they seem to be cutting back their position.

I think it is worth taking a chance on this stock, even though the Gurufocus system does warn that the stock could be a possible value trap given its history.

www.g...urufocus.com/news/1231728/deep-value-in-micro-focus-international-

Remove ... between g and uru

[scepticalinvestor] 23/9/2020 11:18

wonder when fattie6 is going to turn up lol