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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: Elmo Gregory who wrote (34349)10/18/2000 10:37:20 AM
From: Paul Fiondella   of 42771
 
Buying Op

This is definitely a buying opportunity. You can buy 2003 leaps for cash for the price of buying shares outright on margin.

There is very little room on the downside for NOVL. The analysts expect $.02 a share. The company has cut costs. Its directory technology is the best.

This market will weaken the fly by night internet infrastructure companies --- those that have wangled a contract with big companies based upon their "internet" experience. I believe that Novell can compete with these infrastructure companies on a solution basis. Moreover as the financials become more important, large corporations will want the security of going with a company like Novell that has no debt and has the engineering expertise to provide the solutions.

This choosing of the established company providing the solution over the start-up is characteristic of recessionary times.

I have been buying NOVL calls. ITs is a buying opportunity.
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