Micro Focus Share Discussion Threads

[losses] 08/3/2021 07:17

They going to appeal but the news is not good no wonder we had the drop on Friday... Someone knew!

[losses] 08/3/2021 07:10

As previously disclosed, on 2 July 2018, Wapp brought a claim against Micro Focus in the Eastern District of Texas, accusing the Company of infringing claims of three patents in connection with Micro Focus' manufacture and sale of certain products in the ADM product line, including LoadRunner and Performance Center.On 5 March 2021, the jury in the case has now delivered a verdict in favour of the claimant and awarded damages totalling $172.5 million. The matter is awaiting the judge to hand down his judgement and the judge has discretion to increase the total damages awarded.

[stoxx67] 08/3/2021 07:10

would seem a fair "take" on matters PATT

[purchaseatthetop] 08/3/2021 07:09

jw330....I did the same and could find no such close tie up. I wondered if it was standard Amazon behaviour. It made me wonder if this was essentially a re-write of the existing commercial agreement to reflect the fact that already it is delivering excessive value to MCRO. Instead of trying to argue that MCRO should hand back money, Amazon have decided that they can share in future benefits.

[jw330] 07/3/2021 18:43

Does anyone know if AWS has signed a commercial agreement with any other preferred partners similar to the one with Microfocus? I did a bit of digging but couldn't find anything. Would be interesting to get a comparison.

[sinzu] 07/3/2021 18:21

I have just been reading an article in The Times about Fundsmith and an interview with Terry Smith on the subject of appointing an eventual successor to the fund.

On the subject of Amazon as a potential investment, Smith said: “If Mr Bezos would float off Amazon Web Services, we would be very interested.”

In 2020 AWS made $13.5 billion profit on £45.4 billion of sales — a 29.8 per cent margin.

[sinzu] 07/3/2021 12:39

Exactly that, TTNY2004

[ttny2004] 07/3/2021 11:48

Me too. Working in large blue chip company in area of IT and business process transformation. We have major digital transformation programmes in play including big data and making our organisation a data centric. There are many companies who are doing the same or to about to embark on this journey. Very good for Micro Focus and related companies. Huge pent up demand over next few years IMHO.

[rochdae] 06/3/2021 22:18

T&N Some inconsistencies in your post. The dividend wasn't interim it was a final one. So the next interim one will hopefully be around 5p or so, making a total of high teens or maybe up to around 4.5%, not 7%. Also, the company doesn't make a profit of 1.2 billion, that's its ebitda profit, which is something quite different.

Roch

[gurunostradamus] 06/3/2021 19:22

The directors announced a final dividend of 15.5 cents per share payable on 15 April 2021 to shareholders who are registered at 12 March 2021. This final dividend, amounting to $51.9m, has not been recognised as a liability as at 31 October 2020.

[stoxx67] 06/3/2021 19:12

good post , thanks T&N

[truthandnumbers] 06/3/2021 17:35

post-close there was a near 4% bounce in the ADR price for MCRO on NYSE. Next week is the dividend payout on Friday so a double pop on Monday maybe. Price looks too low to me for $1,2bn profit company paying potentially a 7% divi (assuming final to be about twice the interim) and easily covered, plus a formal tie-up with Amazon Web Services. I agree with PATT's implied thoughts on profits - revenue slowdown was beginning to reverse during the last period. Edn of covid plus AWS revenue could see that actually reverse, as in become growth. That will be a key turning point for MCRO and send the price back to more normal valuation (p/e of 20 anyone?) or maybe ten times todays shareprice. Might be only a year away. Still can't believe a dividend paying profit-making business is priced at 1.5 p/e.

[jw330] 06/3/2021 13:59

Whether you like Jeff Bezos or not you have to admit he is one the shrudest business people around. I believe he sees the greatest opportunity ahead in this sector and that is why he stepped away from being the CEO. He is aware that he has a talented CEO in place that will bring a lot of revenue and hopefully this collaboration will be a win win for both parties involved. Looking forward to update in a couple of months time from Microfocus

[dollars down] 06/3/2021 12:43

Sinzu I fully agree. I work for one of the world's largest IT companies and this is pretty much the topic of discussion with all customers etc... Digital transformation ie the cloud. Many customers have not started that journey yet and eventually most if not all companies will move that way
AWS and MS have really killed it

[rochdae] 06/3/2021 09:28

Price drops are 3X as quick as rises. We will grind higher as the news improves imo.

The problem with those negative on mcro is that they are judging the company in the rear view mirror. Seems to me that it has finally digested HP and is in a sweet spot in the industry going forward. Things change. Or in mcro's case, transform.

I found it interesting that they didn't mention revenue going forward in the results. They normally do. They also played down the Amazon tie up in the Q&A session only to produce a significant announcement a few weeks later. They are playing the market I feel...

Dividends from mcro could easily go back to 50p as they have the cash generation.

You don't get many companies with 3 billion in revenue and margins at 41% valued at 2 billion in a fast growing tech industry. It's almost nuts ..

Roch

[purchaseatthetop] 06/3/2021 09:16

As a cotton spinner in Lancashire I am completely sure that the Arkwrights Mule will not catch on.

[sinzu] 06/3/2021 08:59

HodHasharon, I have to disagree with you.

The move from mainframe to the cloud is unstoppable.

It is NOT a fad. The cloud is NOT a fad.

It is happening now.

I work for a large financial institution in Switzerland and I have worked for many of them - 30 years experience of working in this sector.

Not saying it is a quick, easy process, it isn't. It requires a lot of planning and effort, but that is where the likes of AWS / MCRO facilitate these transformation programs.

[hodhasharon] 06/3/2021 08:45

Didn’t realise that. Thanks

[dr knowledge] 06/3/2021 08:44

Hod - Indeed and MCRO helps 40,000 companies worldwide run and transform their mainframe systems, including 98 of the Fortune 100 companies. In my book that makes it a win,win situation all round. ;-)

[hodhasharon] 06/3/2021 08:07

Mainframe to cloud isn’t the magic money tree you might think it is. The organisations that run mainframes will do so for many years to come. They’ve resisted many a technology fad, and will continue to do so. Mainframe technology is moving on too, so don’t conjure up visions of creaking computers the size of a Ford Transit covered in cobwebs being saved by the cloud. It will not happen.

[stoxx67] 06/3/2021 05:19

investment is a product of time and patience

trading is a product of risk, skill and knowledge.

microfocus,you can not go wrong if you have time on your side, it will reclaim the highs of past years and surpass them, such is the nature of financial markets.

the caveat , short term, is that extreme volatility persists, however long term , this volatility is merely noise.

hope the religious nut from yesterday bought into the retracement !!


good weekend

atb

[lowtrader] 05/3/2021 21:32

I have a villa in Dagenham.

[purchaseatthetop] 05/3/2021 20:25

OK....this is my "conspiracy theory".

I was wondering just why Amazon and MCRO would announce this JV. New CEO at Amazon who used to be CEO of AWS. It had already been announced that MCRO was a "first tier" partner of AWS. Why this new RNS as it confirms the already announced details but adds warrants?

IMO...they already know that there is enormous extra revenue coming in from the old agreement and this is the way for the New Amazon CEO to highlight what he had already delivered and also to being hundreds of millions of $ for the warrants (which are very cheap).

So...basically this is a rewriting of the existing contract to deliver value to Amazon and give the new CEO a real win.

BTW....Elvis is actually working in my local chip shop.