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: Joel Brussell who wrote (5122)	11/23/1996 3:49:00 PM
From: E_K_S	of 42771

Hi Joel - I do not see the significance in the $12.4 number unless you might be referring to the 200 day Moving Average price of $12.00. I agree with you that if earnings are bad and the stock continues to trade at or above these levels, then Novell is definitely in play. Again, based on many different valuation models for fair value, this stock is significantly undervalued. A Whight Knight (friendly) purchase and/or merger at or above $21.00 would be a fair offer. One might even expect a preminum as well. I would want to make sure that after any such consolidation that (1) the whole is greater than the parts, (2) strong (proven) management is in place, (3) The new company has many different (but complimentary) revenue streams including product and service revenues, all with potential to grow at annual rates of over 25% and (4) there must be a fit with corporate cultures providing for innovative product development and entrepreneurial (measured) risk taking. This would be a win/win situation for everbody. Such a combination would be a leading force to contend with going forward into the next century. EKS

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