Micro Focus Share Discussion Threads

[montyhedge] 06/10/2020 15:22

What price will the shorting hedges panic?If I was a long US hedge fund I would be buying and stuff the bears. Seems a pretty good bet, knowing they have to buy back one day.

[scepticalinvestor] 06/10/2020 14:35

nice, heavy buying again todayshorts closing?

[montyhedge] 06/10/2020 13:11

Be interesting at 2.30 will the yanks pile in on the adrs?

[ddbsba] 06/10/2020 11:24

They are owned by Treligga plc & are a pooled investment fund & have six subsidiaries.They was based @ Grand canal docks & now have moved in to the I.F.S.C 2-4 years ago (Ire ).

[montyhedge] 06/10/2020 11:10

Nice find, I bet they will be the first to close position, they must be underwater, looking at the dates 2nd Oct.Great tussle between bulls and bears.Bulls charging back.

[gerardp] 06/10/2020 11:05

Looks like the Ardevora short is an existing one which they have now increased. Their fundsheet for August confirms this:

[montyhedge] 06/10/2020 10:56

I would say short position more like 6% because under 0.5% you don't have to report.Smell of burning bears three weeks time, lol.

[enormouswillie] 06/10/2020 09:39

I had a quick look at their website (Ardevora)and I must say, I am not impressed.
They are a small outfit with a few specialist funds, one of them is Ardevora Global Equity Fund, which they describe as a "150 50 long/short fund" - not a lot of info available on there.

[montyhedge] 06/10/2020 08:11

4.34% short, new lot seems to have timing wrong.

[dr knowledge] 05/10/2020 23:39

Monty - re Ardevora (the new short). Never even heard of them before and yes they did open their position on the 2nd. I sincerely hope they get severely shafted. ;-)

[montyhedge] 05/10/2020 22:55

Are things booming now.https://www.openmainframeproject.org/press/2020/09/16/open-mainframe-project-announces-record-growth

[montyhedge] 05/10/2020 22:41

4.34% short position, the new one must be underwater if they went short around 2nd Oct.Let's hope they are caught and short.https://shorttracker.co.uk/company/GB00BJ1F4N75/

[watfordhornet] 05/10/2020 22:01

Boozy - Just checked and Murdoch sold a chunk at £20.can basically buy back same amount for 1/10 the price or 10 times the shares for what the money he earnedNice trade that!!!!

[boozey] 05/10/2020 21:29

Nice conspiracy theory Gerard :) From a business perspective I would like to think Youngjohns was hired for his historical knowledge of the HPE software business and how best to get to the business model to work at Microfocus. There is also a historical connection that dates Murdoch, Lock and Youngjohns back 25 years plus if you look at their CVs.

[gerardp] 05/10/2020 20:50

I believe Robert Youngjohns was General Manager of HP Software and instrumental in the $9 billion merger of HPE’s Software business with Micro Focus.

Some may say that he stitched up Micro Focus and us shareholders. Maybe, Murdoch holds a grudge and is keeping his sporran knife sharp.

[boozey] 05/10/2020 20:09

Gerard, that short would have been opened before the holdings announcement was made. I wonder if this morning's RNS would have made them question just a little bit their decision. One has to think there has to be more upside than downside here for the company short of Microfocus going bust. I would really like to see Robert Youngjohns take a position who is in my view a very credible executive albeit in the case of MCRO a NED. Why Murdoch does not want to have more skin in the game and send out a signal is a mystery. One has to question whether he considers himself just as a journeyman CEO out to make a fortune for himself, or as an executive who wants to make a name for himself. Certainly as things stand his legacy won't sit in the latter category. As investors it is in our interest for the moment to give him the benefit of the doubt and let the jury sit for a little longer.

[gerardp] 05/10/2020 19:51

Unfortunately, today's euphoria did not last long - totals shorts has increased to 4.34%

Ardevora Asset Management LLP have a new 0.50% position on 2 Oct 2020.

Hopefully, they have made the wrong call.

[alex4141] 05/10/2020 17:56

Gents, you have probably seen that Alpha has recently made a negative comment about micro declining revenues and questioned its licensing model ( The latter is in any case partially being transformed to SaaS and cloud technologies by micro.

But for the market and licensing model comparison sake, have a look at Palantir (NYSE: PLTR), the big data and analytics software company, debuted on the public markets a few days ago and is currently valued at about $15 billion, or about $9 per share, trading at about 14.5x projected 2020 Revenues (~1M) but growing fast due to covid-19. PLTR is highly unprofitable with operating losses of -623M in 2018 and -576M in 2019. Its projected revenues for next year are $1.4B with 125 main users accounting for 2/3 of these revenues (half of Micro). Operating in the same space as Micro it has addressable market of ~56B ( see Micro seems to be hugely mispriced. DYOR.

[alex4141] 05/10/2020 17:06

Thanks @sr2day. Cautiously optimistic after today’s performance - this is a massively oversold stock with huge strategic potential to facilitate digital transformation and AI process/security automation in the current coronavirus pandemic. Hope BoD are taking necessary steps to realise some of this potential and hence directors are buying.

[scepticalinvestor] 05/10/2020 16:21

now in profit...crikey!

[montyhedge] 05/10/2020 15:34

Just one hint of a dividend with Finals in February, with the November trading update, even a token dividend.I think nearer 500p by Xmas. What a early present that would be.

[enormouswillie] 05/10/2020 14:58

They (the shorters) really do have better fish to fry now and more lucrative cases - this one, has served it's purpose!

[enormouswillie] 05/10/2020 14:55

I am expecting back to 500p in no time...for starters!

[scepticalinvestor] 05/10/2020 14:50

Back to the 280's in no time methinks

[montyhedge] 05/10/2020 13:54

Wonder if the yanks buy at 2.30pm seeing the director bought Micro Focus adrs.