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: Paul Fiondella who wrote (4023)	10/3/1996 11:19:00 PM
From: E_K_S	of 42771

Paul I will have to disagree with you on the use of our cash. Not only is this a sound investment based on internal rate of return and gross rent multiplyer analysis, but it provides Novell with opportunity to utilize the excellent 'Human resources' available here in Silicon Valley. They are paying about $215 per sq ft for their complex through 2002 and can lock in a gross rent multiplyer (based on cost) of 10 at today's market rates! This is a no brainer for utilization of capital! They get the added bang for their buck to leverage on the 'human resources' here in Silicon Valley (where the best programmers in the world reside!) for no extra cost. What management must do now is capitalize on this opportunity to organize the greatest and most innovative talent in the world to provide Intranet solutions to their customers. If we fail, we can always lease out our new facility to Novellis at $2.50 per sq ft which gives us an internal rate of return of 15% or better! EKS

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