Rhigos
21 Mar 2018
Re: Enough Dead cat first bounce was around 14:30 on Monday 1111p. In the morning I had set a limit sell (all) order at 1050 and met on 19/03/2018, 14:11 at 1050.6p . There was a smaller bounce at 8:40 yesterday of 1084 but today's high so far (up to 15:15) is only 1014 though looks like it might go up a bit more today.I am glad I have sold out of MCRO but not happy about my CG loss of around 52% (my overall loss on MCRO including consolidation, top slice profit taking and dividends on my in MCRO was 30.6% so IMO not too terrible.I remember an interview with a fund manager who always sold straight away holdings in fund, of any company that had a profit warning. His argument was one profit warning commonly followed by two more with SP falling at each warning. Does not always happen that way but more often than is comfortable to hold unless you have very good reason to believe a recovery will take place fairly soon (say under 2 years). I will add PI's have advantage that their jobs not on the line if they under perform over 3 months so can sit on losses for longer.
AuGment
21 Mar 2018
Re: Director buys Unfortunately these small (affordable) purchases make me even more concerned about what further bad news might be around the corner. These guys are well salaried and would not hesitate to "fill their boots" if they thought this was a real bargain. Steer clear for 6 months and wait and see is my advice.
avago
21 Mar 2018
Director buys Good to see some of the directors buying a few shares around £10
Mome Wrath
20 Mar 2018
Broker targets "Analysists" reiterated their 'overweight' recommendation and 1,500p target price."Further management change is unsettling, but the debate has seemingly moved to the health of the balance sheet. This, for us, is a step too far and despite the challenges we believe MF remains a highly profitable and cash-generative business," they said.Deutsche Bank, on the other hand, appeared to be rather less positive, slashing its target price for the shares from 2,800p to 780p.[link]
II Editor
20 Mar 2018
NEW ARTICLE: What Micro Focus needs for a miracle recovery "Sales at this computer giant have crashed spectacularly, but can it bounce back? Alistair Strang looks for any bugs in the system.Written 19th March 23:49Micro Focus International (LSE:MCRO)Every now and then, red flags come from the most ..."[link]
II Editor
19 Mar 2018
NEW ARTICLE: Trends and Targets for 20/03/2018 " MICRO FOCUS INTERNATIONAL (LSE:MCRO) Every now and then, Red Flags come from the most unlikely sources. This lot, with the acronym MFI, set themselves up for calamity fairly early, if the defunct junk furniture behemoth was anything to go by. ..."[link]
axolotl
19 Mar 2018
Re: Analysts and experts Mind you many of those running for the hills don't have a clue either. Just because you can't believe the experts it doesn't mean you can believe the ignorami.
cashpharma
19 Mar 2018
Analysts and experts Just shows you not to believe a word the city experts say. I suspect it shows their ignorance of the realities of running a company whereas anyone whose done a proper job for a living would know that you cant quadruple the size of a company without utter chaos ensuing.The balance sheet is basically debt intangibles and goodwill which is ok if the earnings come through as expected, but that is now a doubt.Nemesis follows hubris as it always has.
Ripley94
19 Mar 2018
Re: Over reaction? "It seems as if every week now there is another corporate disaster".Unfortunately i find very few truthful people about these days or many who have values which they stand by.Why would this not be reflected in the corporate world.Its so sad and makes this game even more difficult.
Hyperproject
19 Mar 2018
Gone Sunk Dead 4 Billion Debt plus lots of internal nasties.....Monty Python Dead Parrot sketch....like the Titanic, she’s gone.
Ripley94
19 Mar 2018
Re: Another cash return and consolidation Massive 55% fall today ... trading warning and CEO steps down immediately.Ive not been lucky catching falling knives .So might not try it this time .
Meanbugger
19 Mar 2018
Re: Over reaction? There are 2 ways of valuing software companies. You can value them on a PE basis in which case MCRO now deserves to sell on a much lower multiple of lower projected earnings Or you can value the company on a discounted cash flow basis less repayment of the debt. As earnings are declining and the company has $4 billion of debt then on this basis the shares have potentially further to fall. I'm not at all surprised at the share price reaction. They could not even say in the trading statement if the chief executive resigned or was fired. The institutions will be fuming and will demand the chairman steps down as well. It seems as if every week now there is another corporate disaster.
cashpharma
19 Mar 2018
Re: Over reaction? Don't jump in yet. Be patient. Wait to see what new CEO says.This was all predictable.
NORFOLK IN CHANCE2
19 Mar 2018
Over reaction? A bargain.... or don't catch a falling Knife....any thoughts
gamesinvestor
19 Mar 2018
A number of issues """"Micro Focus said licence income was lower than expected as a result of a number of factors that "management believe to be largely one-off transitional effects of the combination with HPE software, rather than underlying issues with the end market or the product portfolios", including IT implementation affecting sales teams, high attrition of salespeople "due to both integration and system related issues", disruption of ex HPE global customer accounts and "continued sales execution issues" in North America."""Is it a case of a number of issues or have they completely been wrong footed by a large and possibly smart organisation that offloaded this huge division in the nick of time?At 873 as I type, this is either a bargain, or is this an existential issue that could take the company all the way down? Don't know enough to say either way.Better have a look at the numbers - are they sitting on a massive debt now?Games
