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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: E_K_S who wrote (24144)11/2/1998 11:51:00 AM
From: Greg Johnson  Read Replies (1) of 42771
 
>One observation that concerned me was the re-pricing of the employee stock options late last
>year. If Novell has turned the corner and can begin to grow their revenues, there will be an eventual
>lid on the stock price until all of these re-priced stock options are exercised.

>late last year

It was July, by the way.

This is a rather naive question on my part.
Are the number of options granted to employees a big enough number to matter? Is that number publicly available?

>Therefore, Novell IMO needs to provide employee stock option incentives but not at the expense of
>the shareholder. I am sure a structure can be implemented that is mutually beneficial to both the
>employee and the shareholder.

Well, from a down-in-the-trenches-grunt point of view, employee morale was sorely hurting back at
the time of the option reset. I think that move was absolutely essential to prevent
further loss of talent within the company. Without happy worker bees, there can be no honey!
By the way, at today's prices, many of those options would STILL be
under water without the reset.
Without it.......drowning bees everywhere!
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