B,
As a Novell employee, I echo Mark's feelings. If you look at the financials in a comprehensive way, instead of just looking at the EPS, you can see that Novell is in fact on the right track. Most of the industry analysts I have read indicate that they feel Novell is doing the right things from a management perpective (in the last two years, they have cut costs, gotten rid of unprofitable products, and moved their products towards emerging technologies). The fact is that IntraNetware and GroupWise, the company's two flagship products, continue to enjoy solid growth. They have $1.1 billion in the bank, and no long-term debt. The best-kept secret on Wall Street is that Novell is (gasp!) a profitable company.
If they continue to do the right things (and get a strong CEO SOON!) I think you will see good earnings growth by around 4th quarter this year, and a corresponding increase in stock price.
By the way, my opinions are of course my own.
Jim K. |
