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Barron’s: It’s half off for this Hewlett Packard spin-off’s stock – why that’s still not a great deal

It isn’t every day that traders cut one of the FTSE 100’s blue chips in half.

That plunge in Micro Focus International’s shares MCRO, +4.85% during the past week made Facebook’s FB, -3.34%selloff look mild. The Micro Focus bulls—they still exist—view the dive as overdone. They snort that the British business-software company boasts several stable revenue streams and a healthy balance sheet.

So are Micro Focus shares now a great deal? Probably not, say the bears. They make a convincing case, even as the shares trade around six times forward-year estimated earnings, well below IBM’s IBM, -2.10% multiple of 11.

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