Member Info for Tex2374

I agree. T/O seems most probable. Broadcom? PE?

I expect a trading update after the end of October and the year end. Cash position was given in August, I doubt it has moved much since then.

Read through the July interims again last nights. Key will be showing a reduction in the overall 11.3% revenue decline, fixing the US maintenance and license implosion and steadying the ADM and ITOM product lines, . Need to get this back to the previously ‘acceptable’ overall decline levels of 5-7% which supported a much higher share price.

Yes. Good news.

So why are we down 7%? It makes no sense.

it has to go back up at some point....right?

Given the fact that no guidance was provided I think the market is waiting to see if the accelerated decline in revenue is continuing or if there is a recovery.

Any level of slowing versus the 11.3% in the interims will be well received...

There doesn’t seem any basis for such a sharp step down this morning. However the trend is clearly continuing.

I am not sure what news there is to be communicated but the BoD need to communicate something, quick. Especially given the recent articles on the Micro Focus audits.

I doubt there is a share buy back as this would require and RNS and I also doubt the BoD for a $3bn company read LSE to understand what their shareholders think, it would be nice if they did though :-)

Any views on potential acquirers? Broadcom ? PE?

What updates are people expecting?

Oh forgot to mention the obvious positive effect of a divi!

(Didn’t mention it on my list of negatives as it was the correct thing to pull and many others have done the same thing this year, the issue is that for many, this was what was keeping them in the share!).

No problem Oculus. For those in the share at £3 there is great upside, just stick it in the bottom draw for a few months.

If the strategy can be fixed and articulated in a way that changes market sentiment, then this will move north quickly. Currently, I do not see that from the news the company is releasing. However, things can’t carry on as they are so something will happen one way or another by the end of the calendar year IMO.

The current SP and MCAP numbers make zero sense, the issue is the market has no confidence in what it’s being told.

Tex

Debt and loans are one thing but I think some of the issues are more associated with the overall company revenue and strategy.

Revenue has decreased $1bn since the spin merger
Share price down 85% in the same timeframe.
The company has not been able to execute on moving to a single operating platform and associated expenditure has spiralled out of control.
They acquired an asset for $8.8bn and have a mcap below $1.5bn.
So called ‘strategic review’ offered nothing of any substance.
Accelerated revenue decline with only a couple of % attributed to Covid.
Seems maintenance renewals are under pressure now and this was the #1 topic in the Q&A at the end of the last investor call.
The new Chairman seems to have gone AWOL.
To top it all off the company decided not to give any future guidance to the market! Hmmmmm

All that said there is clearly huge upside here. However, the required change in sentiment to get this back to a more sensible £5+ Is not there.

There needs to be a change from the top down and a new strategy presented which paints a picture of a progressive company and a longer term strategy. The Micro Focus acquisition model of old days has not worked with the HPE acquisition, there is an opportunity for the company to reposition itself, but it doesn’t seem as though the current incumbents want to drive a transformation agenda.

Just my opinion, again massive upside here but this share is where it is for some fundamental reasons.

Tex

DCAT, thanks for all the work pulling this together.. I need to spend a bit more time digesting this (over the weekend) but clearly when the PEA is finalized it should be pretty compelling! :-)

Must be time for Greece now? Have a good one!

Tex

Sounds great DCAT. Will look at your numbers shortly, thanks for pulling it together.
Tex

I would recommend watching this, or just go to the last 3 minutes :-)

Lots going on. Now self sufficient from a sales point of view. Looking at a huge increase in their resources to be disclosed in Q1 next year (just from the 2019 drill program or external resources as well???). Lowest cost production in the world. Huge demand for High Purity products +50%, plus new Titanium product in Q1, plus anticipated increased vanadium demand and China demand through the roof.

Seems we are in the right sector, with the right project, in the right country.

Exciting times ahead.

Tex

I hope you are doing all this in the sun DCAT with a cold beer?!?

Tex

Not to get too carried away with the Largo theory. However, this is an interesting overview of their Maracás Menchen Mine. Interesting to see the Campbell mine stats and reserve life as well as the other drilling programs undertaken in 2019.

Lots of development happening onsite with construction of a ferrovanadium conversion plant and a vanadium trioxide (V2O3) processing plant.

Seems Largo have grand plans and a clear resource requirement.

https://www.largoresources.com/operations/maracas-menchen-mine/

Haha, simples.

I like the plan BF. Let’s see if you’re right.

Lack of PR I can live with (or rather am now used to), lack of articulated medium term strategy is a bit annoying.

I guess we have pretty much put the pieces of the puzzle together, but it would be nice to get some level of confirmation.

LOL.... DCAT. Don’t get me started again on JAN PR :-)

Looks like the sub 3p share grab has finished.

Most material news (IMO) would be trial mining license application and any positioning of a 3rd party discussion being underway.

Tex

New director?

Very tenuous and probably not worth reading too much into, but, Largo retrained GE21 to produce a PEA in 2017 on Maracás Menchen.