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: Vip who wrote (17234)	9/13/1997 3:44:00 PM
From: vinod Khurana	of 42771

In my opinion, NOVL stock is heading down over the next six weeks to a low of $8 1/4 - $8 1/2 followed by an explosive rally to the upside ($10 3/4 - $11 and possibly $13). I believe that the September 10 and October 10 calls options will expire worthless but that the November 10 calls may prove to be rewarding. Given the nature of this no good mother of all dog stocks, I would not bet on the November 10 calls. The January 5 and January 7 1/2 call options in my opinion are the best bets (or longer term leaps). A takeover by IBM at current prices is not in the wings given that there is nothing IBM will benefit from NOVL except migrane headaches......something which I am sure Joe can explain to his chiefs should they decide to cunsult him for an opinion. The 50-day moving average is sloping upwards which is very positive and bullish. However, this does not necessarily translate to a higher stock price short term as the stock was trading at the $6 3/4 level 50 days ago. Today it is 50% higher and hence the upwards slope. As I said above, next six weeks will be a ho-hum period. I have a buy on 10 contracts of the Jan 5 calls @ $3 5/8 good for the next month. We should see this price when the stock hits $8 1/4 - $8 1/2. V.K P.S Did you all notice the NOVELL Hammer vehicle at the construction site ? Now we know where $75,0000 of that $1 billion is invested and what the hell is NOVL doing expanding its offices at a cost of $300 million ? One would think that they get their business in order before expanding into non-business related transactions. I think it goes to show the lack of business experience our Dr. has. A Ph.D in Computer Science and the guy is losing focus on where the money should really be spent. Very typical. I guess what he is really doing is trying to show that NOVL is undergoing change under his leadership. In one year, he will probably say ooops !

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