SI
SI
discoversearch

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 ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Craig Dean who wrote (22623)6/11/1998 7:35:00 PM
From: Spartex  Read Replies (1) of 42771
 
Craig:

Thanks for presenting those details and calculations on earnings projections, but my quick math of 0.22 x 0.32 yields = 0.07, or 7%. Can you run this correction back through your post with this revision if I'm correct??

Also, you use 20% of those sales going to the bottom line, wouldn't 50% be more like it for a software company. If so, then your corrected figure of $1.40 earnings from this area goes to $0.14 times 2.5 (50% profit on revenue, rather than 20%) = $0.35 to the bottom line earnings. That still is not bad, and this would all be in addition to their large business growth. So when that fellow on CNBC the other day was talking that NOVL could see $1/share, he wasn't kidding. Plus, the share buy-back isn't in those calculations. A P/E of 40-45 would make NOVL over a $35 dollar stock into the year 2000 if this all unfolds according to plan.

Regards,

QuadK
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News