We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
MCRO current SP simply makes no sense at all, and IMO will not last long, hence, great and short window here for adding if you have the spare cash, personally, I sold out of my ULVR shares today to buy/add in here as I see much bigger upside in MCRO at present than almost any other viable FTSE shares, valuation is way too compelling, and potential upside huge IMO.
Sentiment often matters more than what is bought and sold. Strange but true.
All tiny algorithm trading. Have seen this on stock so many times. I remember it on FPM a few years back. It went on for weeks and then got taken over funnily enough. Yes strange that
Yes, this is an incredible valuation. I wish I had had a chance to play this one this week but I was too busy with Bohoo.
Recovery here will be sooner rather than later IMO, so there may still be time for me to get out of BOO and into here.
Comparing these figures is meaningless without considering how many shares were in existence in each case - thus for example measures like Earnings per Share; alternatively the market capitalisation in 2006 vs. 2019 would also be helpful. Maybe someone might like to post those sort of figures.
I think presenting the figures like that is misleading: All it tells us is that MCRO is a much bigger company than it was; it will also have more shares so each share held is a smaller piece of the overall company now than it was in 2006.
Incredible the valuation now, looks like the bears are in complete control.
I agree MCRO hold a fair chunk of Debt but that's understandable considering acquisitions the business has made between 2013 and 2017 that have allowed MCRO to increase revenue from 434m to 3.3b and increased asset value 557m to 14.3b.
MCRO has refinanced a large amount of its debt so now The Group has no term loan maturities until June 2024.
MCRO has plenty of cash and liquidity.
hope you are right.
i don't see much hope at the moment.
No doubt now being way too oversold, MCRO is currently trading very much under fair value based on fundamentals, markets do that at times, however when they do, the upward rebound/revision could also be huge and hence IMHO, massive potential upside here now can no longer be ignored.
GLA
Only comparison parameter missing is the debt which is way worse at 4.3bn. That i believe is what is weighing in the share price..
It feels like the SP has been played by Shorts and MM. Let's hope for a good recovery over the next few months. Good luck all
Good post Patts, puts into perspective what good value Micro Focus are.
Like Buffett said the market at first the stockmarket is a voting machine, but in the end its a weighing machine. In other words fundamentals show through in the end.
MCRO hasn't seen this Share price since 2006 so here's how the financials compare:
2006
Revenue: $143 m
Gross profit: 131.5 m
Operating Profit reduced by 44.4% to $22.7 m
EBITDA reduced by 42.9% to $24.5 m
cash: $55.9 m
Current assets: 154 m
Vs
2019:
Revenue: $3.3 b
Gross profit: 515.9 m Exceptional items (294.2)
Operating profit 221.7 m Exceptional costs (255.8)
Adjusted EBITDA: 1.362 b
Cash: 576.2 m
current assets: 14.3 b