Micro Focus Share Discussion Threads

[letmepass] 20/3/2018 08:23

Volume should pick up later... Will see this back over 1500

[ih_127877] 20/3/2018 08:21

really small trades going through, the big boys are not back in yet !

[montyhedge] 20/3/2018 08:13

Fasten seat belts take off next few days, lol

[montyhedge] 20/3/2018 08:10

Nulmis 2100p target after the Micro rns yesterday so 110% rise in share price then they reckon, that will do me boys.

[ih_127877] 20/3/2018 08:07

bought another 5000 shares today at 998p, long-term hold (a week) coming up!

[ih_127877] 20/3/2018 08:02

10% hit coming up today I fear !

[umitw] 20/3/2018 07:48

ADVFN showing 16.6% drop, any reason?

[mattcookson] 20/3/2018 07:34

So, let’s look at this logically. Let’s say worst case if the profit indeed fell by 9% this year, that means the company will still produce a revenue of over 1.275 billion against the current number of circa 1.4 billion, does that warrant 46% drop? hell no :). Misinformed IIs overreacted massively yesterday. This will bounce to at least 1500-1600 levels over the coming days. This is still a solid profitable business which supply software and services to over 70 of the FTSE 100 companies.

Also, now that Stephen Murdoch, the chief operating officer who served as CEO prior to the HPE deal, is back as the chief executive and will rejoin the board. He will replicate the successes of a string of previous underperforming businesses MCRO purchased in the past and turned them all around in to high margin low cost, profit making busssinesses. This is what MCRO & Stephen do the best. It’s rinse repeat stuff mate. IMO this will close In the region of 1200 today. SOLID BUY!!

[patmike] 20/3/2018 07:15

Net debt is 2.2 billion NOT 4 billion. It is a lot of dosh, but typical for this type of company

[montyhedge] 20/3/2018 01:46

Numis 2100p target after yesterday's rns, cash generative, of course cash cow dividend 6.5%.Should settle around 1500p when dust settles, that in my calculation p.e 15. At 1500p still way of of Numis 2100p target.

[augustusgloop] 19/3/2018 23:19

Is a 50% fall justified?

Yesterday it was a growth stock with a PE of over 40.

Today we know that it is not growing.

What PE would you expect for a company with stagnating sales and profits?
And a huge debt!
Below 15 PE seems not too pessimistic.

So, unless they get the business sorted out pronto -- this has much further to fall.

[mattcookson] 19/3/2018 23:16

Numis gave MCRO a target price of 2010p after the announcement this morning (19th March).

Net debt is in line with consensus, there no material covenants and the business remains highly cash generative, Numis added.

[mattcookson] 19/3/2018 23:12

And LW425 you are clearly one of the shorters. Run for the hills dude this will rise back sharply to the levels where this should be starting tomorrow. I see this easily hitting 1400-1500 over the coming days and will probably settle at around 1700-1800 mark given the revised revenue figures. With the RSI of just 19, this is Way oversold ATM. Enough said!!!!

[letmepass] 19/3/2018 23:01

Massive volume and rise tomorrow

[lw425] 19/3/2018 21:47

So net debt over 4 billion

Before todays revenue warning free cashflow for 6 months 28.5m

It's obvious where this is going.

Shorters will be all over it

[lw425] 19/3/2018 21:46

Guys take a look at the interims.

Adjusted Net Debt

4,409.7


Cash generated from operations

267,153



Less:







Interest payments

(82,341)



Bank loan costs

(90,319)



Tax payments

(20,472)



Purchase of intangible assets

(35,650)



Purchase of property, plant and equipment

(9,845)



Free cash flow

28,526

[volsung] 19/3/2018 20:28

My av now 934p I will be happy with 1200p

[montyhedge] 19/3/2018 19:27

Totally agree, look at the dividend yield incredible. Easily payable Micro still a cash cow. Numis 2100p target that will do me, lol.

[mattcookson] 19/3/2018 19:23

Massive overreaction, way oversold!
Wow, what a day for MCRO Today. Fair enough the revenue prediction has been revised down by 4 points from circa -2% to -6% but logically speaking does that warrant a 46% drop in share price?? I don’t think so, this drop is a result of sheepish behaviour by IIs and massive market overreaction. This stock generally recovers pretty well. IMO this will bounce tomorrow and should get up to at least 1400-1500 levels (where it really should be based on the revised revenue figures) over the coming days/weeks. Still a great bargain at this price!

[phillis] 19/3/2018 19:14

STFU Monty
Give us all a break

[montyhedge] 19/3/2018 19:06

Got to feel sorry for the small investor the sells were all 50, 100, 200 frighten out around 850p then the big boys came in and just bought shedloads.Ok revenue down 9% instead of the predictive 2% to 4% oversold and overreaction. I think Numis about right 2100p target.

[montyhedge] 19/3/2018 18:53

Numis new target 2100p. Still nearly 100% above today's closing price.