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

To: vinod Khurana who wrote (18202)	10/29/1997 3:12:00 PM
From: vinod Khurana	Respond to of 42771

Novell on the selling block? Read the last paragraph... Rumors of a takeover by IBM are boosting the struggling firm's shares From Correspondent Steve Young August 27, 1997: 9:34 a.m. ET NEW YORK (CNNfn) - Software company Novell was hot on Tuesday. On a down day for most stocks, the firm's stock gained about 10 percent, and a stunning 31 million shares exchanged hands. This was a welcome change for Utah-based Novell, the leading networking software company until the Web came into popularity a few years ago. Since then, the company has been struggling, and it reported poor earnings last week. Now, people are whispering that IBM would be a logical savior for the struggling firm. Never mind that Novell's management says the company's not for sale. Its shares traded at 10 times their normal volume on Tuesday anyway, encouraged by a front-page trade story suggesting an imminent IBM purchase. And after reporting third-quarter losses last week that were 10 cents worse than Wall Street expectations, Novell could certainly use IBM's deep pockets. "IBM, they have the cash, they certainly don't have this network capability, so it's a logical move," said Jack Shaughnessy, research director at Advest. "Whether in fact something is consummated remains to be seen, but from IBM's standpoint, I can see why they might want to do it." Novell is struggling not only because of the Web's emergence, making networking through the Internet easier than using the company's proprietary software, but also because former chief Ray Noorda was determined to fight Microsoft on every front, pushing the firm beyond its limits. As a result, Novell shares traded at better than 20 two years ago, but then began a long slide. The stock bottomed out at about 6-1/2, and since then has been gaining momentum. It climbed to around 9 last week. "You have a situation now where a lot of the organizational things are done," said Mary McCaffrey, software analyst at Alex. Brown & Sons. "You have a new product cycle ahead." Novell chief executive Eric Schmidt contends a series of steps, including laying off 18 percent of the staff, have positioned the company for a turnaround. The firm is also priced for a takeover -- but any interested parties would have to consider why the stock sunk so low in the first place.

To: vinod Khurana who wrote (18202)	10/29/1997 3:19:00 PM
From: vinod Khurana	Respond to of 42771

Novell on the selling block? Rumors of a takeover by IBM are boosting the struggling firm's shares <<READ THE LAST PARAGRAPH>> From Correspondent Steve Young August 27, 1997: 9:34 a.m. ET Novell posts sharp loss - Aug. 21, 1997 Novell execs find new jobs - June 16, 1997 Novell to cut 1,000 workers - May 28, 1997 Novell embraces the 'Net - May 19, 1997 Novell battling back - April 24, 1997 Novell NEW YORK (CNNfn) - Software company Novell was hot on Tuesday. On a down day for most stocks, the firm's stock gained about 10 percent, and a stunning 31 million shares exchanged hands. This was a welcome change for Utah-based Novell, the leading networking software company until the Web came into popularity a few years ago. Since then, the company has been struggling, and it reported poor earnings last week. Now, people are whispering that IBM would be a logical savior for the struggling firm. Never mind that Novell's management says the company's not for sale. Its shares traded at 10 times their normal volume on Tuesday anyway, encouraged by a front-page trade story suggesting an imminent IBM purchase. And after reporting third-quarter losses last week that were 10 cents worse than Wall Street expectations, Novell could certainly use IBM's deep pockets. "IBM, they have the cash, they certainly don't have this network capability, so it's a logical move," said Jack Shaughnessy, research director at Advest. "Whether in fact something is consummated remains to be seen, but from IBM's standpoint, I can see why they might want to do it." Novell is struggling not only because of the Web's emergence, making networking through the Internet easier than using the company's proprietary software, but also because former chief Ray Noorda was determined to fight Microsoft on every front, pushing the firm beyond its limits. As a result, Novell shares traded at better than 20 two years ago, but then began a long slide. The stock bottomed out at about 6-1/2, and since then has been gaining momentum. It climbed to around 9 last week. "You have a situation now where a lot of the organizational things are done," said Mary McCaffrey, software analyst at Alex. Brown & Sons. "You have a new product cycle ahead." Novell chief executive Eric Schmidt contends a series of steps, including laying off 18 percent of the staff, have positioned the company for a turnaround. The firm is also priced for a takeover -- but any interested parties would have to consider why the stock sunk so low in the first place. Novell was sideswiped by the Internet. The company's stock dropped from $20 to $6.50. Now, IBM may be considering a takeover. home \| companies \| hot stories \| contents \| search \| stock quotes \| help Copyright c 1997 Cable News Network, Inc. ALL RIGHTS RESERVED.