Micro Focus Share Discussion Threads

[highlands] 04/5/2021 16:40

All my current investments are long term and therefore any short term movements are irrelevant.Saying that, I still keep an eye on them in case the fundamental change.At the moment I am happy with my MCRO holding and believe they will do well in the long term.

[scepticalinvestor] 04/5/2021 16:40

This is why top slicing is so important for tech...added at 491.Will add more at around 460 if it gets there...

[rochdae] 04/5/2021 16:39

So please let us know what the leak is ... any reasoned insight would be welcome..

[highlands] 04/5/2021 16:30

A company does not necessarily have to be badly run for news to leak.

[p1nkfish] 04/5/2021 16:09

I bought too early, have sold, capital only slightly eroded. Will certainly be buying, in all likelihood large in 3 tranches as I often do, but now holding back to see what settles.

I like buying right. I screwed up today. Taking a step back to re-consider.

[rochdae] 04/5/2021 15:58

Leaky ship bollo..cks.. It's a professional well run company over 20 years old with revenue twice its market cap and margins of over 40% in a hot sector...

Sometimes I wonder how some posters actually make a profit in the market. I'm beginning to think they don't make anything at all given all the nonsense you read on these boards.

[highlands] 04/5/2021 15:55

Leaky ship???

[rochdae] 04/5/2021 15:53

If it's going to 422 why are you buying? You say one thing and do the opposite.

[rochdae] 04/5/2021 15:52

f.ck the market. I'm buying the cash.

[p1nkfish] 04/5/2021 15:51

400-422p possible.
Chart is/was indicating a breakdown.
Don't fight the market, go with it.

[ivancampo] 04/5/2021 15:50

Added 5000

[purchaseatthetop] 04/5/2021 15:49

We are getting a right kicking here! Blimey.

Never mind. Lets see what the figures are like in a couple of weeks time. I think we will be back up over 600p then.

Bloodbath on the streets....

[rochdae] 04/5/2021 15:45

The company reported a sequential increase in revenue in the last results. I'm not sure why you are expecting another 6/7% compound decline in revenue which you seem to imply. Margins are likely to be up 3/4% on last year too meaning a neutral position for this year. 300 million from AWS seems to be accepted as reasonable going forward.

The company keeps saying they are transforming. You either believe it or not.

Anyway, fcf of 700 million by next year. Trading on 5x future earnings with a divi this year of around 5% I reckon.

I'm afraid though that if everything was known there wouldn't be a market so if you think this is going to 422 I don't understand why you are buying now.

I've picked up a few more ... could only get a partial fill though for a while.

[planit2] 04/5/2021 15:33

@rochdae
The current longer term trajectory does not reflect earnings growth. Earnings would have to be growing for that.
The rate of decline is slowing but the trajectory is still downwards, we need a reverse. You could argue the rate of acceleration is upwards but saying that is like putting lipstick on a pig.

My question was are you still expecting lower revenue from a year ago and if a revenue reduction is reported do you think the share price will move lower?

[farrugia] 04/5/2021 15:09

when is the trading update?

[montyhedge] 04/5/2021 15:02

Support at 500p but looks like may be broken, for this price fall start of a new trading month, must be something, broker downgrade, don't know what.

[rochdae] 04/5/2021 14:39

It's either a good growing company or it isn't. Decide for yourself.

The problem with charting etc. is that it's heavily phycological and the pro traders use that to their advantage as do the advanced algorithms. The longer term trajectory reflects cash/earning growth and that trend is up since last year's news.

But anyway each to their own.

[planit2] 04/5/2021 14:21

monty, what price will you be buying in here and are you trying to get in before update?

You have been trading in and out for a year now so I know you wouldn't want to miss out on a move to £6+.

[planit2] 04/5/2021 14:09

I bought more just now, want to build my stake back up before the update.

I am a bit more worried that this will either be a big move up or down.

The expected figures will show a further sales decline and the investors buying in since the Amazon update might be very impatient resulting in a sudden drop.

The other option is a beat and a sign that the sales decline has arrested and/or margin continues to increase. If that is the case it will show MCRO as even more undervalued and remove a lot of the risk priced in.

Does anyone have a different view than this? Is everyone here still ok with a revenue decline between 5-10%?

[p1nkfish] 04/5/2021 14:07

This could settle back towards 400-422.
Will get shot for posting it.
Longer term towards 1000+.

[p1nkfish] 04/5/2021 13:49

The weakness is a concern and wouldn't have expected it.
500p is a psychological barrier.

[jw330] 04/5/2021 13:32

do some digging. lots of info on this board. major risk here is further write downs of intangibles on balance sheet but steady free cash flow and news of new contracts with amazon and snowflake should bring it back to life soon enough

[montyhedge] 04/5/2021 13:29

Could be, he does not always gets things right, can't believe these are so weak, unless broker downgrade or something.

[jw330] 04/5/2021 13:25

what are you trying to say monty? andys back in so you are getting back in as well?