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

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Gus Risberg who wrote (847)	5/29/1996 3:33:00 PM
From: E_K_S	of 42771

Gus: Three items I see from the financials (after a quick review)include: 1) Operating expenses to be reduced 16% from 1995 due to employee downsize. (Gus: Can we calculate the annual adjustment to expenses going forward? Operating expenses in 1995 represented 54% of net sales. It looks as the new level will be around 38% of net sales. This alone represent $0.76/share savings per year if you take 16% of your adjusted sales figure times four divided by 350 million shares. If the company stays at current employment levels, shouldn't we expect this amount to go directly to the bottom line?) 2) 23 million of the 37 million shares authorized purchased at an average cost of $13.50 3) According to your adjustment, net sales increased 4% (or 17% annualized) year to year. Bottom line earnings should do well next quarter if cost constraints continue and sales continue to grow according to the adjusted levels above. Note: Company continues to see good growth in the enterprise business area. Let's hope Frankenburg highlights the positives in his conference call Friday. EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next