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Technology Stocks : Novell (NOVL) dirt cheap, good buy?
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To: Pruguy who wrote (23102)7/19/1998 10:57:00 PM
From: Paul Fiondella  Read Replies (2) of 42771
 
Options

Well according to the Novell annual report

novell.com

Novell granted 46,617 options at an average price of $8.05 during fiscal 97. There was an employee blackout period during which new options that had been repriced and exchanged for old option at the rate of 5 for 4 could not be exercised. That period ends Monday the 19th. However the number of options does not appear to be significant, with only 24,884 re granted and only 39,823 options outstanding at the end of fiscal 97.

Now somebody may have read this annual report differently, but all I can find are the 39.823 options outstanding.

More significant however are the shares that employees at Novell purchased at 85% of the lowest price in the two half year periods that Novell uses. Some 1.6 million shares were purchased by employees in 1996 and some 1.9 million in 97. The employees got the best price in those periods which must be at or below the average option price. The period during which employees get these shares appears to be late April and October. Once again corrent me if I'm wrong.

So while there will be some selling of the options granted on Monday for a quick 5-6 points, unless that 39,823 figure is not the total covered by the blackout or I've miscalculated somewhere, we are not looking at a significant downward bias.

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