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Microfocus an HYP share?

Practical discussions about equity High-Yield Portfolios (HYP) for income
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PinkDalek
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Re: Microfocus an HYP share?

#217898

Postby PinkDalek » April 28th, 2019, 12:13 pm

PinkDalek wrote:
monabri wrote:Data from Dividend data (interesting that the Special is 335.86 cents ..holders might wish to check this with any RNS from MCRO) - don't hold.


No need to check - it is wrong (as might be the cents against 04/17). The correct figure in pence shows to the right of the chart.


I see https://www.dividenddata.co.uk/dividend ... ?epic=MCRO have now corrected the Special column to show all in pence (rounded to two decimal places).


UncleEbenezer wrote:... But they've also returned a lot of cash. Those dividends are, on the face of it, HYPable, but your income from them will fall over time unless you reinvest when they return cash.


Even so, beware of the Dividend History header, the Specials are not dividends in so far as UK Tax is concerned.

PinkDalek
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Re: Microfocus an HYP share?

#218192

Postby PinkDalek » April 29th, 2019, 4:41 pm

Unsurprisingly:

29 April 2019
Micro Focus International plc


Results of General Meeting

Micro Focus International plc ("Micro Focus" or "the Company", LSE: MCRO.L, NYSE: MFGP) is pleased to announce that, at the General Meeting of the Company's shareholders held earlier today, the resolution proposed to approve the B Share Scheme and to amend the Company's articles of association (the "Resolution") was duly passed on a poll vote. ...

Completion of the B Share Scheme is expected to occur later today. The Share Capital Consolidation is conditional upon Admission and is expected to take effect at 8.00 a.m. (UK time) on 30 April 2019, in respect of the Ordinary Shares and 9.30 a.m. (New York City time) on 30 April 2019 in respect of the ADSs, the Business Day following the redemption of the B Shares. ...


https://www.londonstockexchange.com/exc ... 55699.html

idpickering
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Re: Microfocus an HYP share?

#218334

Postby idpickering » April 30th, 2019, 8:06 am

Micro Focus down 19% on market opening. Yes, you read that right. I think it might be ex divi today though. Either way, that kind of volatility I can do without.

Ian.

idpickering
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Re: Microfocus an HYP share?

#218337

Postby idpickering » April 30th, 2019, 8:21 am

idpickering wrote:Micro Focus down 19% on market opening. Yes, you read that right. I think it might be ex divi today though. Either way, that kind of volatility I can do without.

Ian.


Either it was a glitch, or I got it wrong, but share flat currently.

Ian.

monabri
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Re: Microfocus an HYP share?

#218339

Postby monabri » April 30th, 2019, 8:24 am

Perhaps a result of the share consol. mentioned above?

"Completion of the B Share Scheme is expected to occur later today. The Share Capital Consolidation is conditional upon Admission and is expected to take effect at 8.00 a.m. (UK time) on 30 April 2019, in respect of the Ordinary Shares and 9.30 a.m. (New York City time) on 30 April 2019 in respect of the ADSs, the Business Day following the redemption of the B Shares. "

Dod101
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Re: Microfocus an HYP share?

#218341

Postby Dod101 » April 30th, 2019, 8:26 am

I was about to say the same, except I would have omitted the 'perhaps' from monabri's post.

Dod

Arborbridge
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Re: Microfocus an HYP share?

#218351

Postby Arborbridge » April 30th, 2019, 9:16 am

Now that's out of the way, it would be a good time to think of buying, for those who were put off by the impending event. Personally, I hate that kind of thing because I'm never 100% sure that I've altered my spreadsheets properly to reflect the change.

For those who don't bother with records or units, it doesn't matter!

Arb.

Alaric
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Re: Microfocus an HYP share?

#218354

Postby Alaric » April 30th, 2019, 9:23 am

PinkDalek wrote:Even so, beware of the Dividend History header, the Specials are not dividends in so far as UK Tax is concerned.


Is that known for certain? I couldn't make it out from the announcements and don't need to bother as it's in an ISA.

kempiejon
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Re: Microfocus an HYP share?

#218367

Postby kempiejon » April 30th, 2019, 9:46 am

Arborbridge wrote:Now that's out of the way, it would be a good time to think of buying, for those who were put off by the impending event. Personally, I hate that kind of thing because I'm never 100% sure that I've altered my spreadsheets properly to reflect the change.

For those who don't bother with records or units, it doesn't matter!

Arb.


With all of theses types of reorganisations it's worth looking what happens to each individuals portfolio, MCRO will now give me less income than last year because of my reduced holding, I will probably look at adding. I hold MCRO outside my ISA and I'm intending to sell that and rebut in the ISA so this corporate action has done some of that work for me.

PinkDalek
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Re: Microfocus an HYP share?

#218756

Postby PinkDalek » May 1st, 2019, 4:11 pm

Alaric wrote:
PinkDalek wrote:Even so, beware of the Dividend History header, the Specials are not dividends in so far as UK Tax is concerned.


Is that known for certain? I couldn't make it out from the announcements ...


I'm certain, yes, in so far as the current return (and consolidation) is concerned. I might be wrong though. Do let us know why you think it might not be.

dredd0
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Re: Microfocus an HYP share?

#220393

Postby dredd0 » May 9th, 2019, 11:50 am

Help me out here. I bought £x worth of MCRO shares in February because I wanted £y worth of dividends per year and was happy to let the capital value vary up or down from £x over the next few years.

The company has decided to give me back around £0.17x of my capital and, I assume, pay me £0.83y dividends per year instead. The company now has less cash/more debt on its balance sheet and is therefore slightly more risky, and the market value of my holding has dropped by almost exactly the value of the cash return.

Why is this good news?


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