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 (21652)	4/12/1998 5:18:00 AM
From: EPS	Read Replies (1) of 42771

Hi Elmo, I basically agree with many of your main points! Some of your arguments about valuations of stocks I could have written myself. I will therefore just concentrate on the few points where there is a real difference in our opinions, in my opinion. "In my opinion using the $100 million to acquire missing technology that would either enhance or fill-in Novell's product gaps would better serve all concerned" I don't think that using 10% of its money for investing in itself is in any way incompatible with what you suggest. In case the remaining 900,000,000 million are not enough, NOVL could use the newly purchased stock in lieu of cash. Or even..sell it if necessary. Like you I think that 'The share price is governed more by perception than reality at this time' It does not bode well with money managers and individual investors to see that NOVL is seating on top of this money and is not saying to the world: I BELIEVE IN THE FUTURE OF THIS COMPANY. I think is fair to assume that NOVL needs investors to buy its stock.. Now at this point, in the new cycle of products of NOVL, we all know that it is very likely that earnings will only improve trough cost cut measures rather than increased revenues. For the future we will have to wait until he new products are shipped out.. So NOVL is at this point asking its investors to believe that future earnings will improve that the new products are good yada yada yada. Now who is putting up the money to buy the stock meantime? NOVL? Why not? My proposal if implemented could help investors to focus on the long term prospects of the company. 'The share price is governed more by perception than reality at this time' I personally would not buy this company on "a good buyout rumor" (unless I was sure..) (It has failed miserably before.) Now to sleep! Peace Regards Victor

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