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

To: Paul Fiondella who wrote (18092)	10/23/1997 2:59:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 42771

Paul - Long term the Asian currency problems will benefit the U.S. markets. I see the money flow from Japan, China and Asia comming to the strong, stable U.S. equity and bond markets. This means that our U.S. treasury bonds becomes the curreny of choice and as a result the bond market here will continue to ralley absorbing the additional demand. On balance, I believe that the world demand for U.S. treasuries will be much larger than any short term selling by Japan. This 'event' we are seeing today is a natural unwinding of all those arbitrage positions that sold the Yen and bought treasuries over the last five years. I am even more bullish for U.S. securities now than before this event. The multinational companies will see a dip in revenues and earnings next year due to significant revenue loss in Asia. Novell will also be impacted but to a lesser extent. Novell's European sales were soft the last three quarters and now investors recongnize that future Asia sales will be significantly less than earlier estimates. Just one person's opinion but I continue to buy quality U.S. companies (ie small & mid caps) at these levels however Novell is not one of them. Also U.S. treasuries look attractive too as it appears that the FED will not raise interest rates any time soon. EKS