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Ignore Yuri the shorter. Things looking very good @ MONY
Seems to have done the trick. We've gone from -1% to +1%???
1,000,000 vs 1,000,001 that should read!
>That's a rather large nasty UT sell today.
JG68 I dont think you understand what that means?
To put it into context the UT will show as a SELL if the volume of all SELL orders in the post market auction are greater than the BUY. So you could have 1,000,000 BUY orders and 1,000,0001 SELL orders and it will cross at the price at which it satisfies most orders and show as a SELL
14:01 [MCRO.UK] Accelerates cloud and modernization strategies with Visual COBOL 8.0 and Enterprise Suite 8.0 Announced the general availability of Visual COBOL 8.0 and Enterprise Suite 8.0, building on four decades of providing flexible application, process and infrastructure modernization solutions for core business and mission-critical applications. These enhanced solutions enable IT teams to modernize COBOL and mainframe applications for deployment to the cloud at a time when organizations are seeking new and cost-effective ways to deliver on IT strategies through continuous modernization and digital transformation initiatives. Related ( MFGP ) - Source TradeTheNews.com
It's not too much debt on current trends, hence the dividend payment. It's a software business with low capex requirement so more operating cashflow finds it's way to being free cashflow, sometimes even when profit is negative due to a high non-cash amortisation charge from acquisitions. Cashflows manage debt, not profit. Software businesses generate more cash than others so can carry more debt. With another $300m of cost cuts in the pipeline, it looks set to keep churning out $400m+ of free cash even on slightly declining revenue. Forecasts are to keep paying the dividend and reduce debt. (The interim dividend in Sterling will actually be higher if exchange rates hold a few weeks.) Even though revenue forecasts have just been revised down slightly to marginal declines in 2023 and 2024 (possibly as much due to the strong $ as anything), debt is still predicted to fall over $1bn in 3 years, and these are with updated forecasts that will have taken higher interest rate forecasts into account (which have actually backed off a little in the last few days as commodities indices have fallen significantly (10%) from highs two weeks ago). The dividend outlook remains subject to exchange rate movements but is generally stable, and will rise after 2024 if debt reduction forecasts are hit.
Revisions so far have seen little free cashflow, dividend and debt outlook change since March yet the shares are down 25%. It's an overreaction driven by shorters chasing further tech sector collapse victims but MCRO has little exposure to the privacy law changes, and linked ad revenue headwinds, that have hit Apple, Google, Instagram and the like. MCRO is now tempting to yield hunters - a turnaround stock yielding 7%+ while you wait for recovery and a likely much higher dividend later. Okay, one or two stocks of this type might sour but a portfolio of such stocks generally turns out very fruitful in time. Yield investors play the odds, too, and they look quite good here at this price. It will be drawing new buyers in.
And not forgetting the $545m net debt reduction in H1 was after they spent $28m cash on the Debricked acquisition and $48m on acquiring intangible assets (as well as the $65m on the dividend). If they were in trouble, all of these could have been dropped to add a further $141m to debt reduction. Presumably, they feel they are comfortable for cash generation head room and did not need to.
>Revenue missed by 11% previous I think was 5.
In real terms its 7% (6.8% stated) = H1 of $1300m (Vs $1400m 2021)
You only get 11% if you factor in currency fluctuations and digital safe revenue (now sold) - which is comparing apples to oranges in my book. The key is the yoy Revenue target remains unchanged
JG Thats the point. This is a slight half year decline. They have not missed the year target
Forecast Revenue for the year is $2675m (Vs $2900m 2021) so a H1 of $1300m (Vs $1400m) given H2 is generally weighted heavier is still on target ..which is why RNS states
"Says FY22 expectations for revenue, costs or cash remain unchanged"
Whilst I share your pain the chart is saying we have bounced off 280c (twice)
>They should without doubt cut the Dividend
LOL Er they have?
>Revenue drop is 6%.
I dont forget that includes "MCRO says HY performance is marginally behind original revenue plans in part due to suspension of its operations in Russia"
YET
Says FY22 expectations for revenue, costs or cash remain unchanged
I agree this is now way oversold now, time to buy in or top up (not short nuri you missed the boat again)..the yield is actually increasing due to weak £
>Intensely disappointing results
None sense. Even on average results with the £ so weak vs $ this will adjust.
I do like :-
· This improved quality of earnings underpinned free cash flow1 growth of 36.2% year-on-year to $190m (H121: $140m).
· Net debt1 of $3,651m (Oct-21: $4,196m), representing a net leverage ratio of 3.7 times with a 0.3 decrease since 31 October 2021.
Also market may look at "Operating profit of $35m for H122 (H121: loss of $155m" very positively as it never really understood the concept of writing off exceptional items and just saw a loss?
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
Numis raises CMC Markets to 'add'
Looking like a strong finish and will hopefully close the day on or close to its high, which is a very positive signal
The chart is saying this strong bounce will put its back into the 280-290 zone over next few sessions
Typo Apr 2019 @ 74.5p