I have not sold yet but have a limit order on to sell all at 2350. Very unlikely to be filled today and as my dealing platform does not support enduring limit orders will have to remember to put it on again this evening. I am concerned that they may end with a lot of service support contracts that end up costing them more than they have budgeted for.
Wish I had put more money into XPP instead of MCRO.
I would think there must be a lot of opportunity in supporting legacy systems, which are likely to increase in number as time goes by, and there must be worldwide application and opportunity as well. Dividend is growing, to be covered twice by earnings and HPE integration not a disaster anyway. I would think hold at these levels.
Le-Boom, "Surely you should ride the waves and get out at + £25 and wait for sub £23 again"
Not at all sure SP will repeat past patterns. I bought MCRO with part of the cash from ARM take over wanting some exposure to tech sector. I have not got a lot of faith however in MCRO business model supporting legacy software. Support companies in general do not seem to do very well. They can win contracts but end up making little profit or even a loss. I do not see them as a long term growth stock.
Glad to see at least a dead cat bounce today in SP.
I used to be a shareholder but bailed out because of the risks with the HPE acquisition.
Anyone investing would be well advised to read the narrative sections of the report where they openly discuss the integration problems they are having with their previous acquisitions and state that they are still unresolved.
This is before they have tried to integrate HPE.
In corporate news, software group Micro Focus tumbled as its first-half results failed to impress.
Spreadex analyst Connor Campbell said: "Micro Focus actually posted some attention-grabbing numbers, namely a 28.7% surge in revenue to $145.7m and an 80.3% jump in revenue to $1.23bn. Yet the fact that revenue dropped 2.9% year-on-year to $664.7m when the effects of its HPE Software merger were stripped out, alongside its group results coming in at the bottom end of expectations, soured investors on the tech firm, who sent the stock to a four-month low."
Oh cashpharma, you virtue-signalling success-envying paragon of perfection. Gorged on sour grapes you loathe the people who work hard to be successful. So what exactly is it that you do to make money? Gamble on the stockmarket and sit on the moral high ground of your winnings gazing down at people who are worth more than you? If you pop down to Brighton today you can meet your soul-mates, Corbyn, McDonnell and McCluskey. You will be in your element.
Having bought some Hewlett-Packard shares in January 2013 at $7.70, I find myself the unexpected owner of a few of these, roughly 10% of my total HP and spin off shares (45% HPQ, 30% HPE and 15% something called DXC).
Probably I ought to flog off the MCROs and DXCs, but they're both showing heavy capital gains (plus fx gains), I'm already over my limit for this year and I hate paying CGT. Another alternative would be to top up these to make a worthwhile holding, as I did with Indivior when it was spun out of RB, and Zoetis from Pfizer. But I don't really fancy topping up on a FTSE100 company I'd not heard of before last month, although the 3% yield is respectable.
"It's taken some time for the market to digest LSE:MCRO:Micro Focus's purchase of Hewlett Packard Enterprise's (HPE) software business. In fact, many analysts still appear to struggle getting to grips with HPE's figures, principally volatility of ..."
Expected to place 15 Sep 2017 Share consolidation. 0.926303087067064 new shares for every existing share held. Cash return GBP1.68028953 per share.
7.39% on current SP but consolidation will make number of shares you holding about 7.4% less so shareholders will not be any worse or better off but will have less cash invested in MCRO and similar amount of extra cash in your account.
Thank you Rhigos.
Can see now it was wizard parent LLC... A Private company , part owned by the more familiar elliott management group ( USA ) .
They sold @ 1505 p ..to raise 362 million .
Looks like they sold to soon , even with recent pull back now 2200p ( 50 % more )
Hopefully not - working for a company in the past who acquired other software companies ( 50 in one year at one point) and who had the practice down pat - their share price doubled every 3 years. Not suggesting this will happen here, but hoping it is a good move, and the fall is a blip. Lots of synergies from these situations. Opportunity to top up
Wow look at those exceptional costs. Beginning of a long chain of shareholder value destruction i suspect.
Imagine how much is gonna be spent after the deal goes through with no certainty as to the outcome. High risk share best avoided.
Having worked for a company which made millions by taking over other tech companies in the 80s and 90s, if handled properly, this is a great way to make money. Just wish I had invested more then and I would now have been a multi-lillionaire. M-F have shown they know how to do this, and how to make money out of slowing income streams. Good opportunity perhaps to buy at better value.
"Buying Hewlett Packard Enterprises' (HPE) software business for $8.8 billion (Â£6.8 billion) was meant to make developer LSE:MCRO:Micro Focus the UK's next tech giant, and keep its share price on a relentless bull run.It certainly had analysts at ..."
Spooked by sharp fall today. Had about average size of 2.09% of total portfolio value (bought MCRO on 21 Sep 16) but decided to reduce to 1.57% by selling 1/3 of my shares today @ 2429.52 for a profit of 12.57%. Of course would have been about 20% is I'd sold yesterday.
I bought with some of proceeds from ARM takeover. Do not think MCRO is as good a company as ARM was.
I think it's the fact that the statement blames the fall in license fee sales as due to the scale of change being undertaken. This is before the transaction to buy hp software has actually taken place!
I'm out. I think all the good news has come and gone now. I simply don't believe the they can absorb HP software and manage a company 4x the size. It defies logic.
At the very least the risks are massive howver good the company mgt are.
"UK tech firm LSE:MCRO:Micro Focus, which just replaced fellow techie ARM Holdings in the FTSE 100 index, didn't wait long to show the market it means business. Buying Hewlett Packard Enterprises' software business (HPES), the assets bought from ..."
"Software firm Micro Focus International (LSE:MCRO) stunned investors this morning by announcing an $8.8bn deal to acquire the software division of Hewlett-Packard's Enterprise business.
Shares in Micro Focus hit an all-time high of 2,400p ..."
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