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

To: Joe Antol who wrote (19217)	12/21/1997 5:21:00 PM
From: Salah Mohamed	Respond to of 42771

Hi Joe .... About Corel & Novell >>>> Salah, I still think there's gotta be some impact on the 14.7% Novell owns in Corel in future Q's. How can it not? I know you answered me on that one but, I guess I just don't get it. <<<< >>>> Salah, tell me again how this was already accounted for, and won't show up in upcoming Q's for Novell? I still don't get it. It's gotta be bad for Novell. <<<< I will try to explain this point again. The ~$1.0B cash they show in their balance sheet in reality is liquid assets as follows: 1. $700M-$800M in short term papers (similar to money market funds) which pays interest, the interest payments they obtain during the quarter are reported in the quarterly report under 'Investment Income' (these interest payments have been in the $10M-$15M over the last few quarters, except Q4-97 when they showed $20M). 2. The balance of the $1.0B is in stocks ($300M-$200M), the paper gains or losses are not reported unless they sell the stock. This is exactly what you and I do. Novell's position in Corel (~9M shares) should only reduce the dollar value of their stock portfolio and hence the total cash they show in the balance sheet but does not show in the quarterly report before they sell the stock. In any case, this is a minor issue. Currently, their holdings in Corel are worth $13M-$14M, if the stock goes to zero, then their cash is reduced by the same amount. This is nothing. For example, they said that reducing the manpower by 1000 employees in Q2-97 will result in one time charge of $25M-$35M, they ended up by spending $55M, this is about $20M more than their projections, and they never provided an explanation of this hefty $55M charge. Why worry about an additional $13M-$14M?, for Novell 'losing money is not an issue', they are busy turning the company around, aren't they? <smile>. Happy Holidays, and a prosperous New Year to all. Regards Salah

To: Joe Antol who wrote (19217)	12/22/1997 11:12:00 AM
From: Alphonse Viazzo	Read Replies (1) \| Respond to of 42771

Where's Novell's third party support? Again, Novell, missing in action, enjoying the rural life in Utah and not leading the Silicon Valley technology charge. High-end switch taps into Win NT zdnet.com A Silicon Valley startup next month will introduce a family of high-performance switch/routers that for the first time marry next-generation routing technology with Windows NT. Berkeley Networks is using NT for its exponeNT LAN-based switch/routers to more easily bring value-added services such as security, directory services, accounting and other functions into the core of the net-work, according to sources close to the San Jose, Calif., developer. "Having NT there provides a wonderful base to add third-party products to create your own ecosystem of NT-based applications," said Dave Passmore, president of Decisys Inc., in Sterling, Va. "They can add all the features and functions that customers are migrating toward in policy-based networking." . . . . . Integrating services into the infrastructure "is the way things will be in two years," said one Berkeley beta tester at a networking integration company who requested anonymity. While Microsoft Corp. and Cisco Systems Inc. are just now describing such integration as a part of their Directory Enabled Initiative, Berkeley has already done the work. "Key for Berkeley to be able to do this now is their use of NT," said the tester. -------------------------- No one is associating with NetWare or NDS with any fanfare. Novell, the stealth maker of technology and producer of radar evading marketing. Anyone for ice fishing at Utah Lake with Novell executives? Ahhhh, the sweet, simple life in Utah where ne'er a problem exists. Short and proud! AV