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: Joe Antol who wrote (5294)	11/26/1996 9:37:00 PM
From: E_K_S	of 42771

Joe....Thanks for your concise report. I have got the picture! I would be interested in Salah's view. He is probably working the numbers and thinking real hard about his interpretation of what the future holds. I think I now understand the poison pill amendment but would like to hear something from Noorada (he has been very quiet over the last year with such a large investment), Bastian or even Alan. This report might just be enought to keep them happy for the short term (unfortunately). Management is key! Too bad we did not get Yocom and Borlad did. I understand many thought that Yocom would go to Bay Networks but he probably got a larger stock incentive package from Borland. Any new CEO must first report to Noorada, Bastian and Alan and this will be a tough call for a CEO that must initiate the change necessary to refocus Novell. Therefore, Young must consolidate all his resources and talents to construct a scernio where a highly talented CEO will take on the task of leading Novell through the year 2000. Noorada, Bastian and Alan (IMO) must step aside from this company (here is where the two tier payoff enters into the equation), so a new leader can have more variance in making important decisions. Joe - If anybody can orchestrate this move and pull the right strings (with diplomacy) it's our CEO Young. He is very good at this and will eventually get the job done in as a fair and equitable way as possible. I do not know how much YOUNG will go to bat for the 'average' shareholder as he really does not have any huge incentive to maximize our sharholder value. However, he is a VERY ethical business man and already has all the money he would ever need (a positive for us as he will argue principles). IMO this must occur within the next 90 days or it will never happen! Novell is now at the crossroads where they can contribute significantly to a larger more diversified organization BUT their long term value (to another company) may not get much higher. I think much of this discussion has been going on behind the scenes and will come to a head shortly. Novell still maintains a positive free flow cash flow and has shown it can maintain it's low end sales growth at 15%. However as far as short and long term stockholders value, nothing has changed. At 15PE and $1.00 for 1997 earnings, the best Novell can expect to achieve is $15 - $18. With a a friendly merger, perhaps a 20%-30% growth rate can be obtained and then the picture become much more interesting. Our hands are now with John Young and I hope he can seal the deal which provides longterm shareholder value (for everybody). It will get done but at what "equitable" value? EKS

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next