Member Info for AIMOilking

Added again.

Wish I had sold at 68p high, finger hovered over the button but PMG will rally again. 4x on Dana and 14x on PMG previously. Given the cash in the bank, TC own holding and the deals that have already been done, one thing is sure that Tom Cross will do his damnedest to do it again.

Added today or rather bought back some I sold a couple of weeks back, I am certain there will be a rally into the results. If there is some news of steady progress or even a positive surprise or two, then MCRO will motor.

Added.

Toli, I am about to make your day, if you did mean turnover (1.4bn) in your post, it was actually around 2.2bn in 2020! So if it was going to explode at 1.4, the shock wave at 2.2 should be pretty big!

I assume we are in a closed period with an update imminent, but the BoD (if the have any confidence) should be putting their hands in their pockets and buying a few shares, that would help stop the drift in sp.

Caipi, I actually agree with your 325-330 valuation but currently the market does not agree. I have taken a profit but I always come back to L&G over many years in the dips.

Caipi65 - well I sold today at 287ish. We'll see who is right? I'll buy back when it drops.

Blubutton, you are right, MCRO does move quickly, even over the last year you can see 20-34% rises (quick look) several times in a matter of 2-5 days, if that happens running from today's sp up to or after the results that would put MCRO in the 450-500p range in short order. We know that MCRO has achieved close to 600p this past year and the company and its books should be in better shape now than since the beginning of the pandemic.

£700+ in the bank and similar in cash cash being thrown off each year, whilst debt is managed to mid 2024. Debt can be managed and assuming some debt is paid down, refinancing is not going to be an issue, whilst a possible sale of an asset might make a big dent in the debt. Plus debt reducing with inflation by 3-4% a year in real terms. No, I am not worried, however, I do want to see efforts to pay down the debt - I am much more interested in turnover, profit and cash generation, plus a re-rating of the sp.

The next set of results in November should be interesting and will hopefully reset the sp at a higher level. The levels of cash and assets which already far outstrip Market Cap will also hopefully have increase again. Slightly disappointed with the sp retrace but I think this is temporary.

I will be trading my PMG back into MCRO before the results for certain, in fact before the update expected in November. Last year we saw a big up tick before the report followed by a down tick after the actual results.

Added this week purely on the back of the gas crisis which is not going to be resolved over night, plus any hedging now at higher prices will carry through to a better bottom line than anticipated. PMG should exceed expectations at the next reporting period.

I am afraid that I got bored this week and sold a chunk of MCRO at a profit, not because I am worried, but just saw a better opportunity. I thought I would bag a profit on PMG as the gas crisis is not going to be resolved anytime soon and then come back to MCRO. So far 6.5% compared with MCRO performance this week. Another week or two and I hope to be back with a bigger MCRO stake overall than before. A director's buy, or good news story on an alliance and I would have firmly stayed put. I hate it when share drift on no news.

Hopefully the directors will buy again this September, there were a few dealings in the second half of September 2020.

Even with the right down of asset value or "goodwill" making the ultimate bottom line look bad, this does not take away from the huge cash generation from a fundamentally very profitable and undervalued company.

Again and again, punters must remember that with type of embedded software company it is the cash generating licences that are the assets, along with the products and cash; intangible assets such a 40,000 customer base is also an asset.

I would guess MCRO has a close to $1,000,000,000 in the bank, and generating say $700,000,000 annually of free cash, so the debt whilst large is manageable and already managed to 2024.

Don't you mean $3bn turnover and close to a Billion cash generation?

It's about time that we had some revised broker updates on target sp, Numis were the last at 650p which is still a way off.

AK - Do you mean debt to negate other income or do you mean losses to negate tax on profits? Being lazy - does anyone know how much MCRO can currently write off against future profit?

"The report's key highlights illustrate that 85% of enterprises have increased their budget investment in security operations during the COVID-19 pandemic, 72% have increased their staffing and 79% have increased their adoption of advanced security technologies. "

If this is true, as another poster commented - the sector is booming and given MCRO's size and 40,000 customers - some of this up tick in business must surely sooner rather than later be reflected in an improving sp.

If MCRO could reduce debt by selling something, I think that would be a good defensive move.

The question I pose to you all is: Which bits could be sold off and for how much - that is without damaging the retained part of the business?