Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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It was the div that brought me in in the 1st place and like many, underwater with no div income.
Gladstone have done very well shorting this and have time on their side so unlikely to exit anytime soon. Unless there is a bid..
'I'm not a fan of divi reinstatement this year'
Think a div would bring in alot of volume and shorts would close. If mcro performance and outlook is deteriorating, a div is unlikely anyway. A div would be a strong signal imo
>The only thing to have a higher shareprice is a reinstatement of a dividend
With all due respect Its not Monty..total shorts are over 6% (including those under 0.5%) which equals 20million+ shares to be bought back and replaced..thats a hell of alot of buying momentum that must come at some point as the shorts reduce/close
Reducing the dividend will "encourage" shorters to reduce as they have to cover the dividend whilst also attracting those you've stated
The only thing to have a higher shareprice is a reinstatement of a dividend, when they pulled the 58.3c interim dividend last minute, income boys and income funds dumped stock straight away. November trading update, if they hinted return of a dividend, then easily 500p by Xmas.
It’s not a case of insolvency because I dint think this will happen. It’s a good company but badly run. I agree with TEX regarding Mr Murdock but it doesn’t solve our dilemma. We are completely out of favour when it comes to market sentiment and suffering at the hands of a board that , IMPO, don’t have the ability to change their ways and adapt to the markets current trends. I became a shareholder because I really believed in the company as whole but my resolve is slowly diminishing. When it comes to MCRO my heart rules my noggin and unfortunately always will. So let’s hope we get the change necessary or I’m going to be out of pocket and nursing a reasonable loss. So I’m on TEXs side of change is necessary.
I think it is fair to say that when the sp went to £20+ there was a lot of speculative hype surrounding MCRO ... this "froth" has clearly subsided. The growth via debt & acquisitions strategy hasn't been sustainable, but one of the reasons I took a punt was that MCRO don't appear to have imminent issues with debt servicing and roll-over. Even supporting 5bn debt @ 6% interest is "only" £300m which can be covered. I don't think MCRO risks insolvency like an INTU or Carillion, where the debt burden and willingness of the bondholders to support wasn't there. I think MCRO can "trade" their way out of the current predicament, so I would hazard that £5 within 6-12mths is much more likely than bankrupcy ... but this is definitely a ganbler's stock at the moment
Agree 100% Thebhoys and I have said several times that the most positive effect on the current share price would be a change in leadership. Credibility is out the window and the company needs someone to lead a new strategy making the company more relevant to current market trends around SaaS, PaaS, PPU and which is not simply improve execution and finally move to a single platform (three years too late). Interesting to note that at the spin merger Murdock was moved from CEO to COO so I assume he was closely involved in implementing the new single platform for the company to operate on! Clearly an initial point of failure which has generally continued since he took the CEO position.
Let’s hope the trading update in November (assuming they give a post year end update) gives an indication of a reduced decline from the 11.3% interims.
Good morning all. TEX my concern is since Mr Murdoch taking over the SP was around £12 to £15 not sure. It went to £20+ to its present SP. This is all happened during Mr Murdochs time at the company as CEO. The drop in SP started around 6to 8 months prior to COVID 19. The lack of correspondence is my Maine concern and indeed them not mentioning a share buy back. Mr Murdoch has been in his present position for 2 years and during his employment we have endured poor results. I am frustrated with all of this and his position has to be viewed as deplorable. At my average selling is a no no. I never thought for one moment we would be in this position since the demise of Mr Loosemore.
The company is actually reliant on customers continuing to pay the yearly support fees. New license sales are less than a third of the business. Maintenance is about 65%. Consulting is minimal, as is its SaaS business.
As for price, I assume there have been some crazy offers tabled. At the current price I can’t see offers being much north of £5, the debt mountain is the issue. Given the breadth of solutions (mainframe to predictive analytics) this isn’t a company which easily fits into (or complements) most software vendors portfolio. Probably Broadcom would be up for it and may have been sniffing around.
However, parts of it could be valuable to sell of separately e.g. the security business or infrastructure software business.
I would be wary with the seeking Alpha article. It tells only half a story. Look at MCRO on stockopedia for a more detailed view
Its revenue stream is not simply reliant on licenses. The Company is focused on enabling organizations to run and digitally transform its business with solutions spanning four areas: Enterprise DevOps, Hybrid information management (IT) management, Predictive Analytics, and Security, Risk & Governance
In the absence of strategy or comms from the BoD, I like the share buyback idea posted yesterday.
I agree with RB, given the amount of cash they have got and are generating, it is getting to the point where it would be irresponsible of the BoD not to buy back shares at this price. The are a number of good reasons, such as burning the shorters and taking back some control, protect against takeover at a silly price, support the sp, support long term shareholders and potentially generate some additional cash when sold back into the market. Given what we are experiencing as shareholders, the BOD are remarkably quite, are they in a closed period and cannot buy? Does anyone know off hand if a resolution is current for the buyback of shares to save me trawling through past AGM reports?
That would be my strategy RB.
Lonlon poor sales issues should have triggered an RNS and they cant just put out RNS's to counter price drops, there are market regs, suspect you are short
The so has been falling badly, yet only one rns on cashflow and refinancing. I suspect some poor sales issues, otherwise bod would have rush with another RNs to counter sp drastic drop. More pain to come. Would wait to see price recovery only to buy. Target below £2.20 to take a dip. Vested interest.
I've decided to take a punt below 250p ... seems to me this is way oversold
- annual free cashflow is now close to market cap !
Does anybody think the BoD might initiate another share buyback scheme ?
Seems to me at these levels that if they initiated another $100m buy back, they could more than double their current Treasury position and put a serious floor to the stock price ?
Welcome to sub £2.50... crazy.
Come on BoD communicate something!
You are right John there is little respect for small investors and a lot of shorting is done by US hedge funds. I personally think the UK should distance itself from the US. They short our tax paying companies and go long on their operators such as Amazon and Apple whom pay very little to the exchequer. It is Palin to see yet the Politicians don't want to see it or are afraid to upset the apple cart...
This situation will back fire as look how much tax Amazon pays in the Uk and look at the people it employs, mainly people from Eastern Europe on low wages and compare them to say M&S whose staff are prominently British and pay more in taxes. I wish the likes of JP Morgan would just all Bugger off to Frankfurt and wish them all well learning the German Language. Auf nimmerwiedersehen...