Member Info for AIMOilking

What happened at the close?

We are back to where we were at the beginning of May?

Steady as you go or slightly above expectation report resulting in a small intraday blip.

Very frustrating, let's hope the day traders have had their fun and we'll see some steady so rises.

Bounty, you may be right, rather than just an update, the real figures in July may help. The City does not forgive easily but once a company is on a roll of good news and repeatedly good figures it eventually plays catch up and that is what will happen here. It will just take a few more months of steady progress and another set of results.

This update shows progress in difficult times whilst overcoming difficult organisational problems.

I was surprised cash was not higher but note that debt appears to be £50m less.

I think that the final figures will be a also be a little higher overall than expected.

Getting closer to RNS but disappointing day - let's see what tomorrow brings!?

The rise to the anticipated report has started and I am sure we will end blue today. The question remains as to whether we'll see a jump on decent results?

Did not MCRO report before that they had £700m in the bank and £350m financing facility, plus of course the debt. By know I would hope that the cash pile is around a £1000m, so MCRO should be in a strong position to pay off debt. However, reducing debt to save interest payments may not be the best use of the cash when the BoD knows that all the debt is managed out to 2024. My view is that a balanced approach of debt reduction, share buy back and dividends is the best way forward and is the compromise that will keep everyone happy to some degree. Personally, I have just reinvested the dividend into more MCRO shares - seems sensible to me at this point. Await the imminent report.

I think we are experiencing drift in the absence of serious news that has substantiated figures attached, I am hoping that the rebound will become increasingly rapid, once news arrives.

The company should be pumping the old PR machine at this point and news of buyback, loan repayment or perhaps positive results from recent collaborations would all provide short term sp support. However, given that we are now days away from a serious update, a little drift now is an opportunity as long as the update demonstrates progress - preferably on all fronts.

So I have been topping up and see the drift as an opportunity, even if it is increasing my average, although I am still well ahead over the January to May period.

This next set of results is critical to near term sp growth and I think they will show the MCRO "Tanker" has started to turn.

I have been quietly adding over the last week on the recent drift down.

After the nasty shocks of last year, we have had a stream of relatively positive RNS and news stories, when the markets see a constant stream of positives, they eventually forgive and the sp will rapidly rise to more correctly reflect the value of MCRO.

The debt is managed and manageable - significant cash in the bank;

The margins and cash flow are strong;

40,000 customer base with 80%+ on long term embedded contracts;

Deals with serious players should ensure growth.

What is not to like - Holding DYOR

Added this morning and already in profit, although smarting a little from the recent drop as I had expected the sp to be circa £6 by now. Still waiting for the dividend monies to arrive. the slow delivery of the dividend by brokers may be the cause of some drift as I got the impression that BB members were expecting a sudden post divi rise.

Next report is now the key, if it demonstrates progress then I think will see and say goodbye to the £6 level. I am looking for stabalised revenues or even grown, solid cash generation and possibly a debt repayment to grab the headlines. If things are going really well, a special divi would not go amiss but on balance debt repayment is my preference or even buyback of shares is O.K. - anything to get the sp de risked and going up!

The only thing worth noting in that amateurish StockSlam was the comment about 72% of MCRO's annual revenues are from long term contracts.

When you understand this and relate it to the 40,000 customer base, then you start to understand the value in this company which will hopefully now be a growth as well as value company with the backing of the Amazon deal. The debt is significant but under control and with plenty of cash in the bank and free cash being generated, it will be far more manageable and a lot smaller by 2024 when whatever is left is refinanced.

The odd £20k purchases are going through - believers obviously topping up their ISA's.

Surprised we are slightly down today, I expected a slight ISA bump but then it takes time for peeps to wake up after the bank holiday and sort their cash/transfers out.

I am right - if there were a 9.6bn takeover of MCRO that would be well over £15 inclusive of debt for MCRO. If that happened tomorrow, I would take it! However, I still think that in a couple of years £15 could be a very easy target to surpass by a long way.

Some of the brokers have got it woefully wrong with respect to MCRO's sp and I suspect there will be a number of new broker forecasts above the current sp and that will also help the sp to climb.

Added again today and we are approaching the end of the tax year, so I suspect that people will be looking to load their ISA's and SIPPS next week, so I am expecting this rise to continue, plus I am also expecting the sp to hold and go up as we run up to the May update which is getting ever closer.

MCRO will have carried out due diligence, so normally I don't think there would be any successful chance of suing HP, however, if HP deliberately and fraudulently mislead MCRO and it can be proven, then that would be a different matter.

I am afraid that it is likely a case of grin and bear it, tighten up any future due diligence and don't bite off more than you can chew.

In the scheme of things this Patent infringement, if not overturned, will make a small dent in cash flow and profits and whilst annoying is not worth worrying about in terms of MCRO sp growth in the coming months and years.

Classic US company takes UK company to a Texas Court but an appeal may well be successful, however, we now know the order of magnitude for any claim and frankly it is perfectly manageable and in the worst case scenario will be a mere hiccup in the debt repayment programme. If the 460p level holds, then it is finally time for the bulk of the remaining shorters to bale out, as all the indicators now point to cash generation, growth, cost reduction and a clear plan to achieve this. Roll on the next company report/update which will I trust confirm the positive direction of travel which will translate into shareholder value. Medium to long term holder who will enjoy the dividends in the mean time, which will also surely increase in value.

I agree with AKGold, as long as MCRO manage the debt slowly down over time it is not an issue given the level of cash being generated from basically a company with a long term order book in place. Investors keep forgetting that the majority of MCRO's business is locked into long term service agreements with 40,000 customers. The fact that MCRO can go to the banks and finance all the debt out to 2024 should be an indicator of confidence and I am quite sure that whatever debt remains will be refinanced prior to 2024 deadlines. It should also be remembered that as debt is paid down, hopefully interest and financing costs will reduce and help offset or grow profits. Nice little rise this morning - happy to hold medium to long term.

Added today. I am wondering if the drift has been caused by the lower than some might have expected dividend, currently equivalent to 2.6% for this reporting period. Having said that the reality is that there are only about 100 shares that are paying a higher dividend in the combined FTSE 100 & 250 and some of those are expected to be cut.

I am hoping that we are reaching a point of resistance, especially with the dividend around the corner, I suspect it will continue to drift a little until we get some good news, but again as the time ticks by, hopefully the good news gets closer and we see jumps rather than steady growth in the sp.

Trouble is that investors are getting greedy and impatient in these turbulent times when all some have to do all day is watch the share price and look over their shoulder at some other share that has popped 60% in a day.

Patience is the game here, we might have some exciting days but this is a share to own for growth and dividend for the next 18-36 months. If you are greedy and impatient go and increase your risk with another company.

Thanks Matty, long day yesterday!