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MRO is melrose apologises just came in after MCRO
- adj EBITDA margin 35.4% v 36.7% y/y
MRO.UK Goldman Sachs Resumed MRO.UK with Neutral -
MCRO.UK Reports H1 Adj -$24.4M v -$218.9M y/y, Adj EBITDA $449.1M v $510.7M y/y, Rev $1.27B v $1.39B y/y - Source TradeTheNews.com
Markets going to have a poor day by the looks of it, so not a good day for poor results.
I hope I'm wrong, but ducking the trading statement and holding on for the actual HY results sent me 'trading not great, but lets hope some good news turns up between now and 22 June' signal. I remain longer term optimistic, but tomorrow is a big test.
Down 20 points in the same week preceding the results doesn’t inspire confidence.
Same as going up 1/2 percentage point the day prior.
Poor show, as always.
Hopefully I’m eating my words and doing a 180 on my thoughts concerning the board.
Time will tell.
I'm tempted to top up
Tomorrow, lets see what Stephen has cooked up for us,
GLA LTH A 10% increase in Dividend would be nice???
Er no!
Just 2 days away now, are we seeing a recovery in the Sp before they are announced?
GLA LTH
Perhaps a big part of the potential upside here is that US investors currently see MFGP as 'unfashionable', whereas many would see the likes of Uber, Lyft, Snowflake etc. as trading well above their long term value due to speculative 'bubble' investment. Long term, stocks will return to values which reflect their fundamentals. Micro Focus management do seem to have delivered on fixing internal systems and process issues. If they can also deliver on sales (yet to be proven) and thus cash generation continues, then MCRO / MFGP should return to a sensible multiple. If they can take further cost out and further streamline processes, without upsetting customers, then the multiple should be even higher.
I am not sure why so many of us get stuck with shares like MCRO when we can easily have access to US market.. Perhaps lack of exposure... About a year ago I expanded my vysion and started looking at US market.. Its full of quality stocks I am quite pleased I did so....i keep thinking why should someone invest in MCRO when you can invest in UBER, Snowflakes or Lyft.... My money looks much safer with UBER with potential to grow...
Small problem here is the 2.. will not be seen.
In the last RNS the Tone was That the recovery of Micro Focus as a business is on track.
Sure the recent falls are painful but they are not company specific but market specific.
I've been out of this for ages, but will probably be tempted in the 2s over the next few weeks.. GLA
Wish I’d sold a year ago and never bought back in.
In fact I wish I’d never bought in at all.
Problem with this company is it takes the dives with the market but doesn’t get the full bounce on any return. One of the few stocks that continued to drop during the covid bounce.
One week and counting for the results. Fearing the worst.
Wish I sold yesterday, and bought back today.
These markets are unbearable at the moment, and probably will be for some time yet.
Tomorrow set up perfectly for a move into the 380,s and above?
GLA LTH
Absolute joke of a share. Same time every day. So frustrating.
Was looking good until 30 mins ago. Lots of very small sells, Nasdaq futures look up, Ftse 250 up, hopefully just an intra day pullback.
But this share really tests your patience over time.
Slowly getting there, £4 soon enough Friday/Monday, imo
GLA LTH
for a new break into the £4 range by next Tuesday, not a bad return if it goes to plan?
GLA LTH
for a steady increase of the next few days , just before the results are announced, could be a great buying opportunity to load up before the next Dividend is announced, imo
GLA LTH Lets hope the yield from the Dividend is heading upwards?
Yeah, I agree with Henry. According to the RNS info, the plan is being delivered on but we could be swimming against the tide for a period now. Just how long this bear market affects the SP is the question….1, 2, 5 years?
My personal wish would be for the debt to slowly but surely to get paid down whilst the broader market is depressed and then this behemoth can enjoy some plain sailing up into double digits again.
Well, that’s what I’m hanging on for anyway.
GLA
@strathy: Actually when I was writing my former post I was also thinking what you brought up. My thinking is that the CFO would not have bought at ca 340p level if he didn’t believe that this is a good entry price.
What I was trying to say is that this share is so cheap and already looks so dejected that management needs to come up with a stinker to drive the share price further down.
Personally my hunch is that this ship is being slowly brought around….however now that the whole market is turning south the question is whether price action upwards will really recompense us for being so loyal/patient with Micro Focus. (Loyalty towards a share buys you nothing…)
I hope you are correct in respect of “can only almost go up from here”. I’m afraid I do not subscribe to this however, I hope your right. Should the update not show any movement toward enhanced sales, reduced debt,‘maintaining margin then, this will test the 2 year low of 247.00. Thought these days were behind us. Nope.