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: Elmo Gregory who wrote (14622)	7/14/1997 10:59:00 AM
From: E_K_S	of 42771

That's Great Elmo - But I am a little confused.... The San Jose facility plans seem too large for the current growth expectations looking forward. 1) <One scenario has Novell expanding its Provo site and consolidating the work force there, leasing buildings on the Orem campus.> This is good as Novell can reduce overall expenses and perhaps even generate some additional rental revenue. Also, Novell can continue to utilize the depreciation expenses for these facilities. 2)< Novell already has announced plans to consolidate about 1,000 San Jose, Calif., workers in a new $300 million facility it will build on a 48-acre site it owns near the San Jose airport....The new complex will include nine buildings capable of housing up to 4,000 employees...> I suppose if the build out plans are staggard out several years then the extra space is fine. It just seems that a 400% increase in size is VERY optomistic for a company that (1) continues to downsize and (2) is struggling to continue to grow their revenues. I guess the thought is to build the highest and best use for the site and Novell then can lease out the remaining space. I wonder if Novell still plans to finance the project with the lease back model? I would like to see Sun Microsystems, NetScape and perhaps IBM contract for some of that extra space. Then there should be some real (new product) colaboration <gr> ! EKS

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