Steve, the Novonyx situation is the key to the complex puzzle. It is obvious from the previous 10,000 posts that Novell is not doing what normal, competent business management does. They don't accept advice. Period. Talk all you want, they don't listen.
So, being short, I look at their interest and surmise a strategy. Since they have done nothing but shrink and sell of divisions and lay off their deadwood employees (the good ones left years ago), you have to think that Mr. Young (a close relative of Brigham Young) has a plan. The man is as solid as concrete in the organization. He may not be bright, but he isn't entirely stupid either.
He hasn't made any strategic acquistion. Period. Only divestitures. Every statement that has come out for Novell has consistently stated that shareholders are their least important concern. Consistently.
So, mysteriously, this Novonyx company is incorporated. All of the details are kept as open as the operations of the CIA. It's obvious to the objective eyes that Novell is being deliberately shrunk until it becomes viable to do a leveraged buyout with the assets transferred to Novonyx.
If you disagree, answer me a few questions:
Why doesn't the CFO openly talk with Wall Street Analysts?
Why isn't there a modest stock repurchase plan?
Why isn't there a stated strategy to grow the company through acquisitions?
Why isn't there a candor with employees about the future layoffs?
All you see are lies, misinformation, and a pattern of incompetence committed at all levels of management. The best they could do was to get a second rate leader from Sun. A man who fought against Java until it was too late, then he jumped in front of the parade. And you trust this baffoon? You trust him with your money? You trust him with your mother's money? Would Ross Perot invest in this guy? And Schmidt isn't even the one calling the shots. But he collects big time on Friday, thanks to the suckers who remain long on this stock. Bet you wish you could buy the stock at a penny. That's about what it is worth. Else, why aren't the insiders buying legally?
Short and proud.
AV |
