Microgen Share Discussion Threads

[jakedog2] 08/11/2013 16:26

Gucci,
ditto, could not resist a few more

[gucci] 08/11/2013 16:05

lovely, topped up today

[jakedog2] 08/11/2013 14:29

janeann 5 Nov'13 - 16:34 - 784 of 787

well something is a foot today; huge number of shares changing hands......


Well it was Schroders further increasing there stake....see todays RNS

[gleach23] 08/11/2013 11:35

yes I put back my spreadbet this morning that i'd taken off a couple of weeks ago...still retain my shareholding

not expecting fireworks with the tender offer priced between 120 and 130 though...any other views on this?

[gucci] 08/11/2013 11:27

ah ha there it goes

[gucci] 08/11/2013 10:46

looking for the next leg up now

[janeann] 05/11/2013 16:34

well something is a foot today; huge number of shares changing hands.

[varies] 03/11/2013 11:15

The strategic review tells us that Mr Martyn Radcliffe,who owns about 6% of the capital, will not be tendering any of his shares and that his Incentive Awards only come into play when the share price exceeds 200p.
Given his past successes, I am inclined to hold fast and, indeed, increase my holding.

[bowmans] 02/11/2013 19:20

Janeann. They are not going to raise £10m, they are going to buy back £10m worth at a strike price yet to be fixed. The number of shares that are offered will decide the strike price. Fewer shares offered will mean higher strike price, and greater number offered will mean a lower strike price. They have done this a few times before.

[gleach23] 29/10/2013 19:34

Yes, thanks GHF. I didn't know quite how the market was going to react when I read the RNS quickly this morning...as it turned out there was no reaction.

I had been building up a modest stake here after making some profit after the Strategic Review announcement earlier in the year. This was on the basis that the company had put itself on the market so it's disappointing that no sale transpired.

I agree in the current climate there may be gains to be had elsewhere but I'll re-read today's announcement to try to make something more of it before deciding whether to reduce.

Janeann - "the Board is proposing to undertake a tender offer ("Tender") to return up to GBP10 million to shareholders. The proposed Tender will be at a floating strike price of between 120 pence and 130 pence per share"

[janeann] 29/10/2013 18:54

Thanks for that ghf. An easier summary to read than the RNS! Where did the mooted tender price come from. All I have seen is the intention to raise £10m.

Not sure what to make of it all; still holding and considering, but very tempted to exit.

[glasshalfull] 29/10/2013 17:58

Well...something of a curate's egg IMHO.

Trading in line via the IMS & considerable detail contained in the separate RNS re. The strategic review.

Firstly, I didn't expect retention of both businesses & it is evident that they weren't able to obtain an acceptable bid for the financial services division...so basically they're saying, "build it & buyers will come" (similar to the film - Field of Dreams :-) as TechMarketView indicates below & which I'd concur with. As a result of the additional investment & fundraise they indicate that profitability will reduce.

Secondly, I was disappointed to see the proposed tender offer is mooted at 120p-130p...so no premium for holders.

As per TechMarketView below, MCGN clearly require to build scale quickly to take advantage of their work developing Aptitude, so execution risk also requires to be factored in.

Overall I feel there are better opportunities elsewhere and therefore decided to sell my very modest holding today for breakeven. Good luck all shareholders.

----

Attached is the respected "TechMarketView",

Microgen Strategic Review

Peter Roe, 09:08, 29 October 2013

When Microgen, the provider of business-critical systems for back office and data-intensive systems, announced H1 results, we hoped that the on-going strategic review would quickly reach a conclusion and set a clear direction. After nearly six months of deliberation, management (minus the newly-departed CEO) have set out their decisions. Instead of one direction however, we are getting three; two relatively clear, and one that remains uncertain.

The Financial Systems Division (FSD) is to be ring-fenced into a separate and more leveraged capital structure after injecting a £20m loan into this operation. This may make the business easier to sell at a later date if a generous-enough suitor should appear. This operation will increasingly focus on the Wealth Management sector where we agree with the Microgen management that there is substantial growth and opportunity.

In the Aptitude Systems Division (MASD), the group is focusing on the "Big Data" opportunity where it considers that its agile development model can compete effectively with in-house solutions used by many potential customers. It also aims to build a better portfolio of partnerships and geographical spread, particularly in the US. Microgen will have to generate momentum and scale quickly in this fast-moving and competitive market.

The third strand of the Strategic Review is the intention to grow and diversify the Group by acquisition, becoming a holding company for technology businesses and strategic investments. There is a competitive market for these types for acquisitions, but Martyn Ratcliffe, who is resuming the role of Executive Chairman, views that this initiative, as well as the different approaches for both FSD and MASD will result in a return to better performance. We will continue to watch with interest.

---

Regards,
GHF

[kacker1] 29/10/2013 16:42

Looks like the news stirred some interest then......................................

[michaelwhight] 21/10/2013 18:22

I'm looking for an entry into this. The big buyer is prob an ii. They can arrange to pick up shares without raising the share price looks like a good sign whatever. It only needs confidence and a sense of strong direction to send this higher just like PHTM (which is also cash rich) this year IMO.

[aestuare] 21/10/2013 12:56

over 600,000 shares bought today. any thoughts on what might be going on ?

[gleach23] 11/10/2013 09:41

hopefully it'll be worth about an extra 30-40% tole :)

nice to see it tick up...reading the announcement of the strategic review again, it seems to me the only downside could be that they pursue a large non-synergising acquisition...otherwise i'm hopeful of quick 30-40%...any thoughts on this?

[tole] 11/10/2013 09:35

I've added a few down here fwiw..

[gleach23] 11/10/2013 08:29

this morning I've noticed there are more shares available to sell online than to buy - this has been the first time in weeks whenever I've checked (have been nibbling away buying small quantities during this drift) - could be a sign that these are about to turn?

chart looks due a turn and we will be due some news soon about the strategic review

IMS in last 3 years has been between late October to mid November

[wjccghcc] 02/10/2013 15:37

I have a bunch bought at around 120p. With a strategic review and a CEO who's leaving, it's likely that at least one part of the business will be sold with a cash return to shareholders.

[tole] 02/10/2013 14:59

Quiet thread.. drift in price. Anybody following these?

[gleach23] 27/8/2013 19:58

nice to see the heavy buying today, given the difficult day for the wider market :)

[checkers2] 25/8/2013 11:40

Yes gleach, I have also been adding at these levels.

The fact that the CEO is retiring could indicate clearing the decks for a deal too imo.

In any case I think the stock has a good margin of safety with a potential 20% + upside, even without a deal.

[gleach23] 15/8/2013 18:56

Whilst the interim results suggested that the strategic review may not conclude for several months, the resultant drift (price is now 20% off the recent high) presents a good opportunity to accumulate a position on the quiet imo.

Anyone else doing likewise?

[airwalk1971] 30/7/2013 13:35

Ex-Divi date tomorrow.

[janeann] 22/7/2013 12:57

agree also; good prospects either for increase in share price or distribution to holders.

j