Micro Focus Share Discussion Threads

[montyhedge] 10/5/2017 15:44

If they are shorting I don't want to bet against Starboard.

[volsung] 10/5/2017 15:04

Let battle commence!

[montyhedge] 10/5/2017 15:00

Yes he's short of Micro Focus, you would not want to bet against him.

[steeplejack] 10/5/2017 14:53

Jeffrey Smith.Reputation for shaking things up.Not sure I like him shorting this stock.Looks to me like he's followed the HPE deal through and clearly has doubts.

[montyhedge] 10/5/2017 13:10

Hedgies short, what timing by Starboard.

[montyhedge] 10/5/2017 08:51

My target is 2075p. That was for me, a big disappointment yesterday and when priced to perfection, cannot have any slip ups.

[montyhedge] 10/5/2017 08:04

CEO as bet the ranch on this deal, I hope he as not may he first mistake, paying to much for a company that's revenue seems to be falling.

[3rd eye] 09/5/2017 20:05

wrong thread.

[montyhedge] 09/5/2017 17:32

steeple
lol

[sogoesit] 09/5/2017 17:10

I like that steeplejack!

[steeplejack] 09/5/2017 17:07

Not according to Plato who is quoted as saying-"love is a serious mental disease".

[sogoesit] 09/5/2017 17:02

Indeed; forgive my distortion to suit my purpose. ;-)
But is it not the same?

[steeplejack] 09/5/2017 17:00

"Beauty is in the eye of the beholder"

[sogoesit] 09/5/2017 16:58

Fair enough, monty.
Value is a perception.
I accept I may be wrong over my term view (3 years)... and will pay for it if I am wrong.
My last accumulation was at £22.
Ahead so far on a CAGR of 33% and 66% depending on the holding on the aggregate.

I accept you can be right and wish you luck with your perception.

As they say "Love is in the eye of the beholder"!
;-)

[steeplejack] 09/5/2017 16:55

Well,the jury will be out for awhile but the recovery from this mornings lows is encouraging......if not a relief!

[montyhedge] 09/5/2017 16:38

Sogoesit
You have made a fatal investor mistake, you having fallen in love with a stock and just got your blinkers on.
Even a great company bought at the wrong price is a bad investment. I like Micro Focus but there is no way I can justify this price.

[sogoesit] 09/5/2017 16:31

"lol, know one (sic) can tell what's going to happen 4 years from now."

Thanks for confirming that all forecasts are wrong!
As I said.
Lol.

[montyhedge] 09/5/2017 16:26

By 2021, lol know one can tell whats going to happen 4 years from now. Of course I suppose trying to put a lot of spin on things. Like I said even now priced to perfection, can't afford any more shocks.

Never seen so much Micro traded over 4.3m.

[sogoesit] 09/5/2017 16:10

Yer, Yer, Yer ... Lol!

Here's the margin expansion bit:

"Micro Focus had an Underlying Adjusted EBITDA margin for its mature software assets of 45.5 per cent. (excluding SUSE) for the financial year ended 30 April 2016, compared to HPE Software’s Underlying Adjusted EBITDA margin of 20.6 per cent. for the financial year ended 31 October 2016. The Board believes there is considerable scope to improve profitability of HPE Software through the application of Micro Focus’ disciplined operating model and that it will be possible to improve the margin delivered by HPE Software’s mature software assets (representing approximately 80 per cent. of its revenue for the twelve months ended 30 April 2016) to near Micro Focus’ level by 30 April 2021."

That's on $3.20 bn yesterday but 10% less today or $2.88 bn today.

[montyhedge] 09/5/2017 16:09

Yer, Yer, Yer, I feel they have paid to much.

[sogoesit] 09/5/2017 16:06

The story about this stock, so far, below (from the Chairman's Letter today).
More to come or end of the story?
Place your bets!


"The Board has set out a clear objective of delivering consistent Total Shareholder Returns in excess of Micro Focus’ risk adjusted cost of capital, with an objective of achieving Total Shareholder Returns of 15 to 20 per cent. per annum over the long term. This objective has been exceeded over the period since Micro Focus listed on the London Stock Exchange on 12 May 2005. Over the previous six financial years ended 30 April 2017, Micro Focus achieved an average Total Shareholder Return of 39.76 per cent. per annum, through a combination of increasing earnings per share, improving the consistency of Micro Focus’ financial performance, returning cash to Shareholders, and selectively reinvesting cashflow from operations into acquisitions and into improving the quality of the Micro Focus Group’s portfolio of products, solutions and commercial propositions."

Good luck!

[montyhedge] 09/5/2017 15:50

So those paying 2650p yesterday, have just had any benefit from a dividend, wiped out.

[montyhedge] 09/5/2017 15:49

9% and its a one off payment, are they paying to much for HP, price is set and thats it, should have been linked to revenue holding, not falling.

[sogoesit] 09/5/2017 15:42

In "theory", this is not a stock about sales revenue. The acquisition was all about margin expansion then cash generation... albeit a 10% drop on part of the future acquired revenue looks like a hiccup.
A more than 10% cash yield coming my way in a few months!
A bit odd for a "high P/E" stock if that's the case.

Micro Focus for the "retired". Lol: