Member Info for HenryHistorian

Hi Archy, I also went in recently. My thinking was a bit along the same lines. Just looking at the chart in google one could simplistically take a ruler and draw a straight horizontal line from end of Oct to the present price and see no movement. If one considers that the news last year must have been influenced by Covid which we are now leaving behind us I would say that common sense would almost dictate to see upwards movement in a post-Covid environment. Canaccord have target price of 625p - even when taking the line that brokers are often a bit too optimistic and automatically taking off 15% off broker target prices leaves a lot off upside potential. But this is just my own personal opinion and everyone should do his/her research before taking an investment decision.

@Lee: Others have better views and maybe more tools (Bloomberg etc..?) at their disposal than me so thanks for all your posts here. Reading CHRI55's comment here I was not convinced by his statement on kitchen sinking - I honestly think kitchen sink exercises on Micro Focus are a thing of the past. Starting last year but especially now where we (hopefully) leave Covid more and more in the rear view management should be able to steer this big ship around - I am a patient holder and will collect the dividends for the time being.
I guess my plea is for civil interactions - life is short anyway and being a blog where people have a go at each other is not so pleasant. Peace all - as John Lennon would have said:)

@MarkBellUK: Just to be clear: I am not CHRI55. I hold significant Micro Focus shares and so am following the debate here and elsewhere with interest. I have never posted until today. Here the background to my first ever post: I read CHRI55's previous post about debt increasing post the latest B note RNS. As CHRI55 had not given background I decided to do some research by looking at the RNS where the existing B note was mentioned and posted it here to sollicit the views of others.
Mark - I have read past contributions from yourself and liked them (as I sincerely want Micro Focus to succeed...for obvious reasons) but as adults we should respect/welcome views others than ours. Only having yes sayers here can lead to group think. And as someone who comes originally from continental Europe one of the qualities that I like about this country are good honest debates (even if the woke brigade is doing its best to stifle this). Best wishes, Henry

I think CHRI55 is referring to this when he states that debt has gone up:
RNS Number : 4363O
Micro Focus International plc
29 May 2020
Micro Focus International plc ("Micro Focus") announces that it has successfully priced and allocated a Euro 600 million and a USD 650 million Senior Secured Term Loan B (together, the "Facilities"), increased from Euro 400 million and USD 400 million respectively at launch in response to strong investor demand. The new 5-year Facilities, along with $150 million of existing cash reserves, will be used by Micro Focus to fully refinance its existing Senior Secured Term Loan B due November 2021 and pay associated fees and expenses (the "Transaction").
Final pricing for the new 5-year Facilities is 4.50% above EURIBOR (subject to a 0.0% floor) at an original issue discount of 3.0% on the Euro Tranche, and 4.25% above LIBOR (subject to a 1.0% floor) at an original issue discount of 2.5% on the US Dollar denominated tranche.
Following the completion of the Transaction, the average maturity of Micro Focus's debt capital structure has been extended from 3.2 years to 4.2 years, with the next tranche of Term loans due for repayment in June 2024.
The transaction was led by JP Morgan in conjunction with Barclays, HSBC, Natwest, Bank of America and Goldman Sachs. Lazard acted as the company's advisers.
Stephen Murdoch (Chief Executive Officer) said:
"This very positive outcome demonstrates the strength of the Micro Focus proposition and the cash generative qualities of our recurring revenue model. This is an important step as we work to deliver on the operational improvements we set out in our Strategic and Operational Review in February."

I am a holder and believe in Micro Focus' receovery but even so it seems to me that the volume of the Secured Term Loan B has gone up - but am also aware that the sale of one of the Micro Focus' arms will reduce debt and that refinancing terms are almost unchanged.
One last thing and that should apply to all of us here: Let's not get personal. It should be OK to hold and express different views - as long as these are genuinely held and not posted in the (vain) hope to influence the price of Micro Focus.