Micro Focus Share Discussion Threads

[sogoesit] 26/8/2017 14:35

I believe the following is the set-up.
HP Inc & HP Enterprise Inc are the two arms of HP after 2014.
HP Enterprise Inc will own 50.1% of Micro Focus plc plus software and security products spun off from HP Enterprise Inc into "New Micro Focus plc".

HP Enterprise Inc (Ticker HPE on NYSE) remains a software company. Presumably it is HPE's "legacy" assets that have been spun off as Whitman thinks Loosemore can better manage these than Whitman and her current organisation can (i.e. Micro Focus synergies, efficiency and resulting margin expansion for the HPE spun off "assets" within "New Micro Focus plc").

[ringer12] 26/8/2017 12:10

What exactly is the set up with HPE.and Micro Focus The above has appeared on the Micro focus advfn page advertising the HPE software which seems impressive.

The Website is specifically HPE and Micro Focus is not mentioned which I find puzzling since I was under the impression that HPE software was becoming under Micro focus next week!

Can anyone clarify?

[sogoesit] 25/8/2017 15:19

Seems folks prefer the capital return than the income.
Quote from this week's Shares Mag:
"Most analysts are waiting for the HPES deal to complete before putting combined entity forecasts into the market although Numis has set the early pace. It anticipates $1.78 of earnings per share for the extended year to 31 October (the year end will change from 30 April), rising to $2.05 in the October 2019 12 months.
The implied price to earnings multiple of 15.3 falling to 13.3 is a far cry from the ratings we have become used to for technology sector companies, which often run to 20, 30- mes or higher. By 2019 we wouldn’t be surprised to see a return of surplus cash being returned to investors by way of special dividends too."

[montyhedge] 25/8/2017 08:49

Those shorting hedges, between them short around 5m, painful.

[montyhedge] 25/8/2017 08:11

What's happen today, investors have their 45.22p per share dividend in their account today, then reinvesting it to get the £1.67p special for next ex d next Wednesday.

[ugandalad] 24/8/2017 14:36

MRT a conundrum for which I have two solutions depending on how lucky I feel. Preferred is the "when in doubt do nowt" school of investing and if feeling lucky toss a coin.

Until these guys prove they can't continue to add value I'm sticking with this cash generation machine and continue to top cut as they go over my maximum investment.

[mrthomas] 24/8/2017 13:24

I'm not sure whether to sell before the 31st especially if the price goes above 24 given the fact that the results will come out on 1 September I could in theory go back in and buy at lower price.

Of course the result could be good and I would then lose out but that is the risk i might be prepared to take as I'd rather have cash in the hand

[mrthomas] 24/8/2017 13:24

I'm not sure whether to sell before the 31st especially if the price goes above 24 given the fact that the results will come out on 1 September I could in theory go back in and buy at lower price.

Of course the result could be good and I would then lose out but that is the risk i might be prepared to take as I'd rather have cash in the hand

[sogoesit] 23/8/2017 18:48

No idea monty... it depends what kind of statements we get on 1st September.
Thereafter I think the end year was changed, can't remember, it's somewhere in a previous post of mine... could be a bit choppy while folks speculate on how it beds in.

GBP is weak so that's support for time being.
Hope it gets to £31 by end of the full 12 months' consolidated trading.

[montyhedge] 23/8/2017 15:05

SogositWhat's your thoughts after 1st Sept think we will hold above 2000p

[sogoesit] 22/8/2017 16:16

Sadly, I've already spent the 45p ;-)

[montyhedge] 22/8/2017 15:57

Wow great three day run, plus out 45.22p to be paid Thursday.

[losses] 22/8/2017 10:11

Been expecting across the board market correction (inevitable)... but it doesn't seem to be happening.

[montyhedge] 22/8/2017 09:40

Nice run up may take a breather, will the bears have another go?

[losses] 21/8/2017 15:34

Not much of a squeez... the squeeze will happen when we see 100p rise

[montyhedge] 21/8/2017 15:08

Bear squeeeeeeeze, ouch.

[montyhedge] 21/8/2017 12:14

So bulls we can stuff the bears, all the hedge funds who are short between them total 2.13% of shares about 4.9m shares how the hell are they going to buy that lot back, without pushing the price higher. I'm convinced they will buy back before 30th Aug, of course only my thoughts.

[montyhedge] 21/8/2017 10:18

Surely those hedge funds will close their shorts before 30th August, when Micro go ex and we get our £1.67.

[montyhedge] 17/8/2017 14:56

Experts saying £1.22 sterling now that would be nice for our future dividends.

[sogoesit] 17/8/2017 09:12

It does seem cheap monty...
Kevin has promised 15-20% returns per annum (quote from latest results):

"Micro Focus sets out to deliver consistent long-term shareholder returns of between 15% and 20% per annum. The board is confident that medium-term low single digit revenue growth, industry leading margins and strong cash conversion will ensure that Micro Focus can deliver on that strategy. These returns can be further enhanced by the appropriate deployment of capital in value enhancing acquisitions."

Even with "low single digit revenue growth,..."

I think we are using 16 for the recent valuation discussion if I recall correctly.

EDIT: Nope, I am wrong. I was using 17 giving a USD forecast share price of $39 which, at $1.30/GBP makes the Sterling share price £30 post completion but not factoring in the RoC.

Looks like Sterling may be weak come September; currently 1.2885 going on 1.29.

[montyhedge] 17/8/2017 08:09

All the forecasts are for Micro to be on a p.e 14. Seems cheap for the UK's biggest software company, after 1st Sept.

[losses] 16/8/2017 18:18

Bought a bit too early as usual... added more yesterday...

[sogoesit] 16/8/2017 16:54

A nice pop-up today.
A break above 2230 then to the next uptrend line at about 2260 will all look good imv.

[montyhedge] 16/8/2017 15:18

I see another hedge fund as joined them and gone short.
They are short and caught it seems to me.


So between them they are short nearly 5m shares good luck bears trying to buy that lot back.

[montyhedge] 16/8/2017 15:12

They better closed before the other xd 30th Aug £1.67