Novell (NOVL) dirt cheap, good buy? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Novell (NOVL) dirt cheap, good buy?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Jack L. Dlugach who wrote (4754)	11/9/1996 9:42:00 AM
From: Stuart Knapp	of 42771

Dear Jack, I saw that damn movie too. I would be willing to watch it every night if we could squeeze 25 out of a buyout. I know you follow ValueLine. Go to page 2221 (like I needed to tell you that :-) Their projections for price appreciation over the next three to five years is 25-35. They base these numbers on their earnings forcast model. Question-How many years of revenue stream do you discount into an acquisition price? S&P's latest report places fair value for Novell at 18.5. This does not reflect any premium for goodwill (not that this applies here) or an install base of 55 million or minority interests, etc... My point is that it appears that 17-18 would be too cheap. Also with the 352 mil in outstanding shares, this turns into a big fish to swallow. Do you remember the cap on the Lotus takeover? Could someone please pass the merlot? Ahhh...Thanks....that's better. Stuart

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next