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I find it remarkable how people on this thread has suddenly turned bearish. Not because the earnings were not what they were hoping for, but because of a one man's action. At the same time I found myself getting bullish on the same stock. Am I contrarian by nature, if so, maybe that is why I have been consistantly doing well in the market up to some nine month ago that is. I have also done great during the last month or so as stocks I am holding are up 25% on the average from their lows (I am still in the red however for this year).
I thought that Bob Frankenberg resignation happened to be a great event as far as I am concerned. Not because I think he was a bad CEO, on the contrary, I think he did a great job in spite of what someone has been posting here to the contrary and whose posts I don't feel deserve any response from me). I think B.F. did a great job when the company needed precisely that kind of job to be done. He has lead the company to a situation in which another CEO of a more aggressive nature would be more beneficial. In this sense, he did the company well even by his resignation. At the same time I am not worried about competition from NT in the forseable future. First NT is like a children game compared to NW when it comes to serious Networking, second, as Jack kept saying and seems to have forgatten his own words, a company could keep growing its market shares by 100% a year without making any significant dent in another company (here Novell) because of the absolute numbers involved and the growth of the overall
market. People who were disapointed by Novell's last earning report were so because of their own wishes and self build unrealistic expectation. They fail to see the whole picture of the economy where, two quarters ago, almost every company was showing fantistic earning growth and suddenly, starting last quarter, were going back down to earth. Companies like Novell whose earning were on target (or 1c less) have in fact done great, even more so when we consider the major rechanelling action the company went through. Any way, considrering the very dark picture the street has painted for the company in the last two days I find that the action in the stock was superbly positive. These are my 2 cents and, unlike Joe, I still have a lot of it. Ghassan. |
