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

To: Paul Fiondella who wrote (20676)	3/4/1998 9:40:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 42771

Hi Paul - If you read the entire news on briefing.com regarding Intel's warning, it was not Asia where the major problem is. It was slower sales in Europe (ug!) and the America's (ie. U.S.). IMO the full impact of Asia is not here yet. Another wave yet to follow. Also there were some company specific issues with Intel including lower than expected margins and a one-time nonrecurring charge from the purchase of Chips & Technology. I suspect the box makers will feel the brunt of the selling tomorrow. It may spread into the software companies and perhaps the networking companies. The true value of the high tech companies relies on their fundamentals and management. I am still concerned about Novell as the fundamentals have still not stabilized and expenses need to be reduced to get more inline with future sales. As Jim M pointed out, Novell's revenues continue to fall...even after the tricky bookkeeping. I think there are better shorts out there than Novell but the real sleeper is exactly how bad have those books been cooked! With CFO Toolon still as the head chef, only through an independent audit will the common shareholder really know. I just hope for everybody's sake, we do not see a replay of IFMX with Novell. At current prices, it is just not worth the risk. Has Novell responded to the Class suit yet? What amount of time is typical for a response? Disclaimer: Just my opinion, no published facts other than what was detailed in the class suit. It just smells funny to this investor. EKS P.S. Jim M. I thought the free flow cash flow was still positive but I really do not know what to believe anymore as I feel now that all the reported financials are suspect.