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

To: Joe Antol who wrote (18809)	12/1/1997 2:32:00 PM
From: BP Ritchie	Read Replies (2) \| Respond to of 42771

Hey Joe, it's cheap enough for a 'takeout' right now! I sure hope it isn't heading much lower. And I don't believe the 'shorts' will 'run to cover' until they become convinced that the stock price is heading up with some pretty high amount of confidence. There's only two things that I think could happen to make them belive that will be true. 1) Higher revenue and profit ... Schmidt just effectively said it's going to take a few more quarters. 2) A genuine buyout supported by the BOD ... we've been down quite a bit of road on this topic already ... I don't think they're ready yet ... but might be if they believe that this latest 'strategy' isn't working (probably not enough info to decide until 2 more quarters). But, ... I also think that as long as the stock price is under $10 that the company is serious peril (at least it's senior managment) because it's just too cheap to ignore the opportunity to take them out of the business by simply shutting them down. I think the managment is behaving like a bunch of teenagers using their parent's cars (in our case the stockholder's assets) to impress other teenagers with their 'neat toy' (like titles & visibility) and don't seem to be adequately concerned with the impact of the value of the assets that they have in their control ... like kid's abusing their parents car that finally get told to give back the keys, they are perilously close to the stockholders telling them to get the hell out of the way and let someone else try to 'increase' the shareholders value from the company assets. There are lots of options open to Eric Schmidt to increase shareholder value right now (not being used effectively) ... and I think that he better start to treat that objective as a serious priority very soon ... or most of these managers will be trying to ask Joe Marengi for a job soon instead. There's too much stockholder distress and concern for them to keep ingnoring the stock performance. There could be a 3rd and 4th reason for the price to head up soon, but it's up to the company to put these reasons on the table.