As I was mentioning earlier why NOVL stock is likely rising...
Novell Shares Rise on Optimism for NDS Sales, 4th-Qtr Earnings
Bloomberg News
November 23, 1998, 11:05 a.m. PT
Novell Shares Rise on Optimism for NDS Sales, 4th-Qtr Earnings
Provo, Utah, Nov. 23 (Bloomberg) -- Novell Inc. rose as much
as 7.1 percent, gaining for a sixth day, amid optimism that the
maker of computer-networking software will report strong fourth-
quarter sales and earnings tomorrow, boosted by new products.
Novell rose 1 1/8 to 17 15/16 in early afternoon trading of
9.56 million, making it the seventh-most active stock in U.S.
markets. Earlier, the shares touched 18, their highest in three
years.
The company, which once dominated the market for network-
management software, has switched its focus to Internet-based
software as Microsoft Corp. has taken market share. Novell's NDS
software, used to control data traffic, has gained momentum in
the past five weeks as three of the largest Internet-equipment
makers said they'll make their products compatible with it.
''They've had a lot of positive things happen'' related to
NDS, said David Takata, an analyst at Gruntal & Co.
Novell probably will benefit because Microsoft's Windows
2000, which will compete with NDS and Novell's Netware 5.0, isn't
scheduled to be available until late 1999 at the earliest, Takata
said.
In recent weeks, Cisco Systems Inc. and Lucent Technologies
Inc. said they'll make their networking equipment work with NDS,
while Northern Telecom Ltd. said it will license the software.
Provo, Utah-based Novell is expected to earn 9 cents a share
in its fourth quarter ended last month, the average estimate of 8
analysts surveyed by First Call Corp. It's scheduled to report
results tomorrow after the close of U.S. trading.
Novell had net income of $7.17 million, or 2 cents a share,
on revenue of $269.2 million in the year-earlier period.
I will predict that the earnings will actually be .11 or .12. But we will see.
Toy |
