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(MCRO) Micro Focus Chat

Discussion in 'General Share Chat' started by Mongoose82, May 26, 2016.

  1. Mongoose82

    Mongoose82 A Legendary Member

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    Read Panmure Gordon & Co's note on MICRO FOCUS INTERNATIONAL (MCRO), out this morning, by visiting https://www.research-tree.com/company/GB00BQY7BX88

    "Meghan Trainor has moved to newer things (a ditty called ‘No’) but for Micro Focus Kevin Loosemore it is still ‘all about the (installed) base’. We managed to grab Mr Loosemore following the beat to FY2016 estimates announced this week. The Micro Focus model is unchanged: the emphasis is still on working the installed base as those customers create the huge cash machine that has made a share price which on this day in 2014 was 830p and today it opens at 1610p. Somewhat disappointingly Mr Loosemore does not see a big..."
     
    WhatTheHeck likes this.
  2. Mongoose82

    Mongoose82 A Legendary Member

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    SUSE listing/de-merge?

    Panmure note out this morning.

    https://www.research-tree.com/company/GB00BQY7BX88

    "Johnny Cash reminds us that SUSE is in a competitive niche – but it is good with its knuckles. A brace of trade news from SUSE reminds us that it plays at the heart of a global Linux open source market. To reiterate our investment view: Micro Focus is likely to ‘do something’ with SUSE over time – either a trade sale, a US listing or a de-merge in London. However, it is unlikely this year as the new executive team are finding their feet. The closest valuation peer, Linux and Hortonworks, may suggest that SUSE might sit more..."
     
  3. Mongoose82

    Mongoose82 A Legendary Member

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    "RedHat had a decent print with its Q1 ahead of consensus after the US close last night; however, a 1% FY EPS reduction resulted in a share price down c5%. Despite the share price over-reaction, the news is of interest to Micro Focus shareholders as SUSE (the other Linux distribution, which competes with Red Hat) is benefitting from the same demand side driver – ie the secular growth in open source software usage. At some stage Kevin Loosemore, CEO Micro Focus, will ‘do something’ with SUSE – a big cUS$1bn payday for shareholders."

    Panmure note out this morning: https://www.research-tree.com/company/GB00BQY7BX88
     
  4. Mongoose82

    Mongoose82 A Legendary Member

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    Panmure note out this morning: Https://www.research-tree.com/company/GB00BQY7BX88

    "We learn that the UK Cabinet Office is finally to shut down its Millennium bug website as part of a cleaning up exercise. It is a nice reminder that the Millennium systems have not gone away (c70% of the world’s processing etc.) and as we noted in our latest valuation monthly Cobol is back on the Tiobe top 20 software list. Micro Focus has already pre-announced the headlines from its 14 July financials, and shares have regained their upward move. We are relaxed about guidance, there will of course be a caution on currency (reports in dollars) but we expect the company to reiterate the -2 to 4% decline in the core, balanced with appreciably faster growth at SUSE (caution our 6% growth there looks conservative)."
     
  5. Mongoose82

    Mongoose82 A Legendary Member

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    Panmure's conviction list Q3 update was published yesterday:

    "The Micro Focus investment case continues to strengthen. Micro Focus has already pre-announced the headlines from its 14 July financials. We are relaxed about guidance: there will of course be a caution on currency (it reports in dollars) but we expect the company to reiterate the -2% to -4% decline in the core, balanced with appreciably faster growth at SUSE (caution - our 6% growth there looks conservative) and of course guidance on Serena Software, for the first time part of Micro Focus. Micro Focus is the sector’s TSR all-star – we still see a return of value this year (NetDebt/EBITDA is 2.4x on our return assumption)."

    Https://www.research-tree.com/Company/GB00BQY7BX88
     
  6. Mongoose82

    Mongoose82 A Legendary Member

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    "No sign of headwinds a as Micro Focus delivers a banner set of results. Micro Focus has already pre-announced the headlines from its 14 July financials, and shares have regained their upward move. We are relaxed about guidance; there was of course be a caution on currency (it reports in dollars) but the company upgraded guidance to -2% to 0% in the core, balanced with appreciably faster growth at SUSE at 18% vs our 6% growth. Micro Focus is the sector’s TSR all-star – we still see a return this year (NetDebt/EBITDA of 2.3x) on our return assumption. In our view the rating is too cheap, with EV/EBITDA 10.3x and dividend yield 6.0%." - Panmure Gordon

    Https://www.research-tree.com/Company/GB00BQY7BX88
     
  7. Mongoose82

    Mongoose82 A Legendary Member

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    "Micro Focus performed robustly in FY 2016. The company recorded solid growth in revenue, well supported by a strong performance from its SUSE product portfolio. Micro Focus's operating profit more than doubled during the period, mainly due to lower operating costs resulting from integration benefits. The company benefitted from the acquisition of The Attachmate Group, Inc. Furthermore, the acquisition of Serena bodes well with Micro Focus' plan to expand into mature infrastructure software segments. The acquisition would also help boost overall efficiency of the company, product management and sales productivity. Micro Focus enjoys a healthy balance sheet with good cash flows, which led to higher dividends payable to shareholders. The company plans to focus on its strategy of simplifying its underlying operations. Micro Focus does not expect revenue growth in FY 2017 as it seeks to build revenue from solid core and aims to grow revenue from FY 2018."

    Beaufort update this morning: Https://www.research-tree.com/Company/GB00BQY7BX88
     
  8. Mongoose82

    Mongoose82 A Legendary Member

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    "All the details are important. Re-pricing debt means that the revised terms provide a cash interest benefit in the first year of cUS$8.3m. This gives cause for a small earnings upgrade. Hat tip to Micro Focus for good housekeeping and remembering to sweat the small stuff...

    News. Micro Focus announces that it has allocated a re-pricing of its senior secured term loan B which will reduce its ongoing interest payments."

    Panmure

    Https://www.research-tree.com/compa...ns-on-repayments-good-housekeeping-01-08-2016
     

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