Morson Share Discussion Threads

[cb7] 11/9/2001 21:05

dan, not impressed with the price obtained for Datadirect...looks like it was sold for a song.....the remaining part,although growing, has questionable profitability,(is that why they are holding onto lots of cash, or is it for acquisitions?--we havnt been told)...they say it should be profitable by Q4, so although on the face of it MRN looks good value Im not impressed and it looks like the city aint either

[dan_bach] 11/9/2001 20:30

Interesting developments today, further muddied by the events in the US.

Some facts. Market Cap last night £129m. Price move today down 16p to 80p. That reduces market cap to £107.5m.

Read this Citywire article that states after today's announced sale of Micro Focus bit the cash pile will be increased to £100m.


That values the ongoing business at £7m. The company will be returning £56m and retaining £44m so its market cap after reorganisation will be approximately 90% cash.

I'm not clear on the future turnover of the bit remaining - someone else can fill that in.

This looks like a good buying opportunity....?

[greynag] 10/9/2001 21:19

Bid imminent?

[aquilla] 10/9/2001 16:01

Anyone know why the shares have gone up 2.5p today when most of the trades are sells and we're in a falling market?

[a.fewbob] 07/9/2001 01:00

thanks. I'm still hopeing for a takeover, shares or cash i'm not fussed but what the heck is taking so long?

[welshanalyst] 06/9/2001 22:00

On 30th August, Equity investigator forecast £9.3m (earnings per share of 7.9p) for next year, and £13.3m (eps of 11.2p), and tipped as a 'Buy'.

[a.fewbob] 30/8/2001 12:43

Never look a gift horse in the mouth.

[gurlywurly] 29/8/2001 08:29

I couldn't see any update on the current bid talks or did I miss something? Maybe they'll say something at the analysts presentation later. They only started new talks in July so wouldn't expect conclusion for a while but a mention that they are still ongoing would have been nice.

[dan_bach] 29/8/2001 08:07

Results out :



Key First Quarter Highlights (ended 31 July 2001)

* Revenue growth year-on-year from continuing operations
* Pre-tax earnings from continuing operations improve
* Cash position remains strong
* Restructuring on course following Micro Focus sale

[welshanalyst] 18/8/2001 22:11

This month's Techinvest says 'Equity Investigator is forecasting earnings per share of 7.9p for the current year to April 30 next, with 11.2p for the following year. Following the disposal of the Microsoft business, Merant now has cash per share of approximately 70p.
The shares are clearly worth well above the present price. Adding a valuation of 20 times the current year forecast to the cash pile gives an indicative price target of 228p'.
'We also said last month that the low price made Merant a very attractive sitting duck for a predator. It was therefore no suprise to hear that the company had received a takeover approach.
Merant received a similar approach last December which eventually came to nothing.
This time, it's cash pile is 50% higher and cash is now an even more attractive commodity than it was eight months ago. It is certainly much more difficult for any company to raise fresh funds in the current environment than back then.
So we will be very suprised if the approach this time round does not reach a satisfactory conclusion'.
Results next week might contain an announcement, as well as good figures.

[tirere] 13/8/2001 22:22

The most significant developement today was the huge late buying (over a million shares bought)in my view. The current share price in no way reflects a successful bid which could and indeed should be as high as £2.00. The share price strongly is strongly supported by fundamentals. 69p cash per share, strong current trading, eps forecasts of 7.9p this year and 11.2p next.

What does this late buying today mean? Predator after failing to agree terms launching a hostile bid ? I think its a strong possibility.

Good Luck

[dan_bach] 13/8/2001 19:30

Embargoed for release, Monday 13 August 2001 - 07.30am (BST)


MERANT plc

MERANT plc completes sale of Micro Focus (ACT division)

MERANT plc is pleased to announce the completed sale of Micro Focus, its legacy development, transformation and integration business (the ACT Division) to Golden Gate Capital and Parallax Capital Partners. Shareholders approved a resolution at the Extraordinary General Meeting held on 23 July 2001 with regard to the Disposal of Micro Focus, the ACT Division. The initial intention to sell Micro Focus business assets to Golden Gate Capital and Parallax Partners was announced 12 June 2001.

Ends

[a.fewbob] 12/8/2001 23:52

And in takeover talks!

[welshanalyst] 12/8/2001 16:13

Latest figures imply Merant is still undervalued:-

a/ Prospective PE ratio of 11.7.
b/ Net asset value of 133p.
c/ Cash flow of 23.3p per share.
d/ Price to sales ratio of 0.64.
e/ Price to research expenditure of 3.95.
f/ Negative gearing of -39.2%.
g/ Buybacks at 95p.

[a.fewbob] 26/7/2001 12:16

Yes but since they now have three holdings of MRN will they have dumped one at a nice profit?

[welshanalyst] 25/7/2001 20:04

Techinvest has twice purchased Merant for their portfolio in recent months.
They bought 7,000 on 24th April, and 5,000 on 12th June.

[a.fewbob] 24/7/2001 23:45

If takeover talks lead to them being bought out then we can expect at least 150p.
This means the buyer would be buying MRN on a PE of only ten when you strip out the cash.

[welshanalyst] 24/7/2001 21:47

At April 30, Merant had cash per share of 45.3p, and with the sale of Microfocus this will increase to 69p.
This means the rest of the business is only valued at 37p per share.
The company is cash generative, and has a net asset value of 133p per share.
The sale of Microfocus will free management time to spend on higher growth areas.
The forecast earnings per share are 7.9p per share for next year, and 11.2p the following year.
Techinvest rate as undervalued and a 'Buy'.

[supervisor] 14/7/2001 00:13

Why all the sells when a possible bids on the table?

[dan_bach] 13/7/2001 20:32

A Citywire Research Report on today's developments :

10:45, Fri 13 July 2001
Merant: Genuine bid or just opportunistic sniffing?
(Citywire research report update) Any company with some fundamentally good technology and a decimated share price is bound to be fair game as a takeover target, and today’s candidate is Merant, writes Joanne Wallen.

[ajduk] 13/7/2001 14:51

CB7 - Knowing my luck it will be one company having phoned twice! Seriously though I've been watching these for a while and I think in any conditions other than those at present this co would have a much higher rating.