Silicon Investor (SI) -- The First Internet Community

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? -- Ignore unavailable to you. Want to Upgrade?

To: Scott C. Lemon who wrote (30341)	2/15/2000 3:16:00 PM
From: Spartex	Respond to of 42771

Novell Outlook Bright as Ever Director of Online Research: Dave Research (2/15/00) It?s hard to complain about a stock that has risen 280% in 16 months. But investors in Novell (NASDAQ:NOVL - news) could easily make a case that the software company still suffers from a form of benign neglect on Wall Street. New management, led by Dr. Eric Schmidt has accomplished everything it set out to do. And the company is now on track to post strong growth this year and next. All the while, shares of Novell still lag many other tech plays by a variety of metrics. Though Novell has historically developed software for networks, the distinction between networks and the Internet is becoming increasingly blurred. Indeed, the company has stopped speaking of its new products in terms of networks but instead as ?Net services,? which the company says ?eliminates traditional network boundaries to help create one Net.? Ironically, a number of IT consultants such as Whittman-Hart (NASDAQ:WHIT - news) are helping their clients mesh internal corporate networks with intranets and the external Internet presence. And it?s no coincidence that these firms are signing on with Novell. In recent weeks, PeopleSoft (NASDAQ:PSFT - news) , Broadvision (NASDAQ:BVSN - news) , 3Com (NASDAQ:COMS - news) , Compaq Computer (NYSE:CPQ - news) and IBM Corp. (NYSE:IBM - news) have agreed to incorporate Novell software into their offerings. Over the last month, the company has released a slew of new products squarely focused on the web, including; iChain, which links disparate networks and web sites; ZENworks for servers, which helps IT managers control software in a mutli-server environment; and eGuide, which helps quickly locate people that use other networks. Despite the flurry of new products and partners -- that should put a bright sheen on the company?s outlook -- many investors have been concerned about the impending release of Microsoft?s (NASDAQ:MSFT - news) Windows 2000. That software is expected to incorporate key network directory features that will create trouble for Novell?s Network Directory Software (NDS). Over time, it should become apparent that Microsoft?s 2000 is not sufficiently robust to handle the mission-critical tasks associated with network management. The bad buzz has already begun for Microsoft, as the Gartner Group recently predicted that one in four corporate users will have problems getting Windows 2000 to work with other software. That is precisely why Novell is collaborating with other firms to jointly develop software at an early stage. Playing a bit of corporate ?gotcha,? Novell announced on Monday that it had found security holes in Windows 2000. To be sure, Microsoft has a less than stellar history with regard to new versions of operating software. On Thursday Novell is slated to release quarterly results. Consensus estimates call for the company to earn $0.13 a share on sales of $320 million. Over the last four quarters, Novell has met estimates or exceeded them by a penny. This time around, whispers are circulating that the company will surge past estimates and report profits of $0.17 a share. That would be quite a departure, and a possible indication that the company is finally ready to play the ?earnings surprise? game. Bottom Line: When the company holds its quarterly conference call, a highly bullish outlook for the remainder of Fiscal 2000 could set the tone for a stock rally into the forties. Updated on 2/15/00 with NOVL trading at $37.56. Recommended 11/16/98 at $20.91 fnews.yahoo.com