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

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To: Reginald Middleton who wrote (10292)3/27/1997 3:40:00 PM
From: Salah Mohamed   of 42771
 
Hi Reginald...About Growth

>>NOVL is a growth company, therefore it should invest all avaliable cash internally to finance growth, especially considering it competitive situation.<<

Novell used to be a growth company. They aren't anymore. They spend about 18% of revenues on R&D, about 35% on sales/marketing, but revenues aren't growing. Start by Q1-96 and adjust for discontued businesses, and tell me where you see the growth becuase I don't see it. Yes, they are in a growing market but they are not growing.

I still say that if they pay dividends the stock price would be higher, while we wait for the growth to materialize. As an example, Adobe pays dividends.

Regards

Salah
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