Novell (NOVL) dirt cheap, good buy? Message Board

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

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To: Joe Antol who wrote (18409)	11/7/1997 2:52:00 PM
From: E_K_S	of 42771

Did you notice the recent Netscape purchase??? Netscape buys out GE's stake in Actra joint venture biz.yahoo.com ===================================================================== Sounds like the Novonyx joint venture? Notice that the acquisition will be accretive to Netscape earnings in the second half of 1998. Any idea at what price a Novell sale/merger to Netscape would be accretive? My guess if Novell can stabilize their revenues at $800 million for 1998 a conversion price of between $6-$8 per share might be accretive. If you adjust the price for (1) cash on account, (2) real estate & equity assets and (3) factor the free flow cash flow into the new Netscape income statement......a conversion ratio at these levels does make sence. I still think another round of layoffs is in the cards for Novell as these cuts make the "accretive" scenario more attractive to the acquirer. EKS

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