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: jim A who wrote (5273)	11/27/1996 12:32:00 PM
From: Martin L. Robbins	of 42771

Jim, ref your message <<NOVL earned 0.17 this Q and is confortable with 0.8-0.9. Seems to be that 10% EPS growth from this Q on will give 0.87 for next fiscal year. Seems that NOVL needs to be at 20% growth to warrant a P/E of 20-25 and a stock price of ~17-20. Am i missing something. How can we interpret NOVL to be a growth sory based on these avarage numbers. >> I'm no rocket scientist, but I am having a difficult time seeing where your numbers are coming from. As I see it: Q4=$0.17 building on Q4, 4 X Q4 = $0.68 Anticipated 97 earnings (lower end)= $0.80; 0.12:0.0068= 17.65% Anticipated 97 earnings (upper end)= $0.90; 0.22:0.0068= 32.35% So, assuming management is not going to be overly aggressive in their estimate for next year's earnings, we can expect to see a year to year growth (based on Q4 earnings -- NOT the actual $0.35) of 17% to 32%. I would tend to believe the upper end of that because NOVL is likely to hedge their bets this far out. 30% growth in earnings does not sound like 10%. If I went wrong somewhere please enlighten me. I didn't read the last 50 messages yet, please forgive, if someone beat me to it. Marty

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next