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Technology Stocks : Novell (NOVL) dirt cheap, good buy?
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To: Greg Jung who wrote (25821)3/6/1999 11:53:00 AM
From: Loring  Read Replies (2) of 42771
 
Food for thought. If the institutions own almost half the available stock, that leaves less than two million shares for trading. NOVL can't split at this low price; they wouldn't want to issue more as they don't need the cash. All this is good for the remaining shareholders in that it helps to build demand.

However, NOVL has a limited number of products (albeit successful ones) and a proportionately small leading EPS at 45-50 cents. As a result, the stock is not going to soar like the dot-com stocks. A quick way to gain more developed products would be to make an acquisition, which might be preceded by a new offering to add to the stash of $1 billion in cash.

Considering the above scenario, what kind of product would make sense to NOVL at this point? Something to enhance Digital Me? If you were Dr. Schmidt, what might you be entertaining?
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