Hi Paul...About Share Buyback
>>Whereas IBM continued its buyback program, Novell did not. This happened even though the price declined to a point where it would have made sense, with stagnant revenues and no realistic need for acquisitions on the horizon, to acquire more.<<
IBM continued its buyback program because Gerstner turned the company around while the stock price is cheap relative to their financial performance. In the case of Novell, they have been stagnat for the last 5 quarters and a turnaround is not in sight. My main point is that right now we are better off with the cash in the bank becuase it provides some support for the stock price. Should a turnaround becomes apparent and the stock price remains low, I would strongly support a share buyback program.
>>Were insiders shares bought at higher than market prices? Inquiring minds would like to know.<<
I am sure you know that I don't have a clue about this one. But, if true, this is real cheating and probably would require an investigation by the SEC.
Here are two very interesting articles about Novell from Netwok World:
Goto:
nwfusion.com
The first article is on the home page, the second article you find by searching for Novell March articles.
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Novell CEO search over
By Christine Burns
Network World, 3/24/97
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More Unix woes and some advice for Novell's new CEO
By John Gallant
Network World, 03/24:/97
From the article:
For better or worse, Sun stands as a real alternative to Microsoft, and I hope Zander's former colleague Eric Schmidt, newly named CEO of
Novell, takes his words to heart. Like the Unix vendors, what Novell needs is a message to inspire customers, not a lukewarm pitch about how NT and IntranetWare can coexist.
Sure you have to integrate with NT. But tell me how IntranetWare will be better than NT, how it will be the best platform for Java-based Internet and intranet applications, how it will advance the cause of network computing in ways NT can't. In short, offer a solid alternative. Don't just tell me how you can play in Microsoft's game. define a unique path and commit all Novell's resources to it.
Customers are backing Schmidt; they've invested in the company and welcome this reinvigoration at the top. Unix users are also loyal. They understood the value of network computing before most other customers. But my question from July still lingers: Will Unix wake up?.
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Regards
Salah |
