Micro Focus Share Discussion Threads

[mrthomas] 23/5/2017 13:30

I think the good news is that will stile in the top 100 by the end of this month unless the shares goes below i think £19

there also the possibly that with the share buy back and div due in the next few months this will lower the price.

If it still in top 1000 and gets to 20 then think would buy if it falls out side top 100 at the end of this month tenth fall could be more

Just hope this is not a deal too many and over paid will only know in about six months to a year and a lot can happen

[sogoesit] 23/5/2017 13:24

It's possible but there is support/resistance at 2280/2260 to an upper upward trend line.
If it breaks through that then the next upward trend line support is at 2010p.
The 4 week MA is at 2305 now and the 63 day MA is at 2009p

[bossman1978] 23/5/2017 13:07

Do we think it could drift back down to £20 mark?

[silverfern] 23/5/2017 08:49

good re-entry point for me.

[volsung] 22/5/2017 17:13

Looks like another dip before a rise. The chart shows many of them.

[montyhedge] 22/5/2017 16:26

Seen the write up, did not like it I must admit.

[montyhedge] 22/5/2017 11:29

Looks like the shorting hedgie boys smell blood on this deal.

[montyhedge] 22/5/2017 11:16

I see new hedgie shorting, Third Point LLP on 17the May .68% position, good timing.

[montyhedge] 22/5/2017 09:45

Credit Suisse cuts rating on Micro Focus to underperform, thats another word for sell.

[montyhedge] 22/5/2017 08:28

SogositWould you mind casting your slide rule over Falanx trading at 9p. I know your research is good. They are in cyber security.Your thoughts, thanks.

[montyhedge] 22/5/2017 08:12

It's becoming reality, I just hope they not are paying to much. With HP revenue down 10%.

[sogoesit] 18/5/2017 17:17

Sounds reasonable but in this case theoretically incorrect.

[montyhedge] 18/5/2017 09:18

Seems to me the only thing holding this shareprice is the dividend, but shareprice will fall that amount when ex.

[montyhedge] 16/5/2017 13:35

Overpaying.

[ringer12] 16/5/2017 10:17

Perhaps Labour have threatened to nationalize them for making too much profit!

[bigboots] 16/5/2017 08:07

Why the fall today

[montyhedge] 13/5/2017 10:46

SogositYou know I love Kainos plc, you were put off by IT for NHS. Gov being urged to invest more in NHS in Internet security an IT. More work for Kainos I would have thought. Seems to me the NHS trusts with Kainos, seems unaffected. Must be good for Kainos.

[sogoesit] 12/5/2017 16:19

Cannacord Genuity raises TP to 2880 from 2700 today - BUY rating

[mrthomas] 12/5/2017 13:48

Thanks for that I did read Lex yesterday and wondered how they got to 9% but if you take $2.60 / by say 1.25 gets to £2.08 / 24 that 8.66

But some of this will be capital so number of shares reduced and some dividends

Question now is if and when to buy and at when ch price

[steeplejack] 12/5/2017 08:13

Lex commented on Micro Focus couple of days back.

Stated that HPE software only represents 6% of total HPE sales.

States that with regular dividends and special return of capital plans,looking at prospective yield of 9%.This,plus the company being on a forward PE of 20 (sorry Monty,that's the multiple they have put in print) the stock should hold up but "best to wait for the HPE deal to clear before buying".They wouldn't recommend buying the dips.

[sogoesit] 12/5/2017 06:53

MrThomas,
The details are in the Circular, issued on 9 May & available on company web site.
In summary, Micro Focus shareholders (note, not the Consideration shareholders) will get the following distributions prior to completion (expected September 2017):-
- a Capital Return of US $500 million; and
- a Final Dividend from the net earnings prior to close-out of the existing company on a 50% payout ratio (which total net earnings I estimate to be about US $350 million).

The Capital Return is free of income tax to UK residents but counted as income for non-UK residents & involves a share consolidation at a ratio to be announced (tax summary in the Circular). It's a capital re-structuring for UK residents therefore similar to their previous process and the likes of Melrose & Persimmon etc.
The Final Dividend will be announced on 12 July next.

My estimated payout per existing share for both is round about US $2.60. Exchange rates will be announced/fixed on 12 July I believe.

[mrthomas] 11/5/2017 17:24

have been in this share before and am now thinking of buying again but am trying to work out the capital re payments to share holders. In the past they reduced the number of shares I owed so had to top up.

Now will this be the case if I had shares as of tomorrow would it be a dividend or a capital re payment.

Would appreciate comments as trying to work out what capital or dividends will get till the end of Dec 2017. As some say that this could be a good dividend yield stock Thanks in advance

[montyhedge] 11/5/2017 15:00

My fear is the 10% fall in revenue, as CEO said its only a estimate.
Could be less, doubt it, in my view, could be more. Wonder why no clause in the bid, if revenue falls Micro pays a lower price?

[montyhedge] 11/5/2017 08:36

Agree, but when the CEO says its disappointing. Have they paid to much, revenue down 10%, will the price they pay be down 10%, no.

[big_cat] 10/5/2017 16:03

We have been here before....have faith in the management, they have always come up trumps irrespective of all the shorters betting against it