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: Loring who wrote (26600)	4/12/1999 9:51:00 AM
From: PJ Strifas	Read Replies (3) of 42771

I don't recall any "whispers" regarding CPQ & NOVL in ERP software department. The only ERP stuff I say was from OBLIX (which by the way has a great piece of software that integrates PeopleSoft and NDS). CPQ had this product display of server-ware (specially configured Novell Servers that handled alot of work), the Internet Caching Appliance and some annouced work to develop more appliances as they come along (proxy servers, DNS servers, VPN stuff) as well a cluster management, server farming and storage area networks. Hey, let's face it, we all knew last year that '99 was going to be a "slow down" year in PC purchasing as companies began to focus wholesale on their Y2K problems. These earnings warnings are just the beginning for the computer industry -- right now it's hitting the hardware makers, next come some of the software players and lastly will be some of the service companies (that don't have a Y2K battleplan to sell to it's customers). Companies will continue to cut purchases of products until their Y2K issues are met. I think last year we saw a slight increase in PC & equipment purchases to replace some legacy systems that would cost more to make Y2K compliant than to replace. This phenomenon caused an upswing (slight?) in hardware sales. Now we are seeing the drop off of that added purchasing coupled with the new restricted purchasing policies of some major corporations. This caused a larger dip than if the added purchasing just faded away. What I'm expecting to see is a hurt this coming quarter with an adjustment in expenses + inventory which will make the next quarter a little easier to bear. That still won't help CPQ, IBM, HP and Dell much until later this year (Q4) when I suspect the usual surge in Holiday consumer sales will help to offset the losses in corporate purchases. Peter J Strifas ps- some software companies will do very well this year with people switching to newer products. Most companies have customers who will be upgrading current products with patches which translates into no (or very little) income. Depending on the installed base of their products, the companies who make good with their "free" patches will create stronger customer loyalty which will create more sales in Y2000 as the companies who did not make the upgrade (but only patched) get religon and want the products they did look into as alternatives. In other words, some companies did not budget for new software purchases this year but will be swayed by what they did see in demos, sales pitches etc that they will make the migration either next year or in the next 18 months.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next