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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Charles P. Hubbard who wrote (27796)	8/19/1999 8:18:00 PM
From: Wallace Rivers	Read Replies (2) \| Respond to of 42771

CPH - I am a NOVL long (have been about 4 years now), and I wrestle with the same issue as you, and not particularly in reference to Novell, but a whole slew of stocks. By some internut standards, NOVL is cheap (and it is a quasi-internut stock now). It's hard for me to say good bye to my stock (I know you shouldn't get emotional in the market!), been through too much with it, and have seen the company experience a total turnaround, nipping at MSFT's heels. NOVL is the network once again. I was taught not to buy stocks with a higher PE than their earnings % growth, so I see where you are coming from. Try to find many of those in this day and age! Good luck, Wallace

To: Charles P. Hubbard who wrote (27796)	8/20/1999 11:51:00 PM
From: Jack Whitley	Read Replies (1) \| Respond to of 42771

<<Even the most optimistic analysts are only calling for a 40% increase next year, and in my opinion, the history of the company does not warrant that. Their recent return to profitability is in their favor, and their products are OK, but the stock is just plain overvalued in my opinion.>> But you also have to factor in gross and net margins. Software is not the food industry or retail. If Novell keeps everything going in the same direction, they are leveraging themselves to become a profit-generating machine. Also, I think it is fairly obvious that Novell is right now using every opportunity to really tune the operation and slough off problems while analysts expectations are relatively low. Including changing to more conservative inventory accounting methods and getting rid of SCO, Corel, etc. I am more than satisfied, especially in light of the fact that some had called for THIS quarter to be a tough quarter due to Y2K lockdown,etc. jww