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

To: Bob Howarth who wrote (21645)	4/11/1998 10:17:00 AM
From: EPS	Read Replies (1) \| Respond to of 42771

quicken.excite.com

To: Bob Howarth who wrote (21645)	4/11/1998 11:53:00 PM
From: Don Earl	Respond to of 42771

Hi Bob, Although they have been reporting revenue on investments in the range you mention, you might have a look at the 10Q to see what kind of unrealized losses they are sitting on. About $64,000,000. If Novell spent half their cash to buy back stock at current levels, it would only reduce outstanding shares by about 14%. I doubt it would create enough of a shortage of NOVL to move the price much. I've also noticed a general tendency of companies that announce a share buy back to have a very bad quarter which makes the stock rather cheep for awhile. You might also want to take a look at insidertrader.com to see how many Novell insiders have felt that NOVL was a good investment at prices between $6.50 and $11 over the last year. Doesn't seem to be anyone running the company that felt they could make money paying over $6.50. The theory that insiders know more about the value of their stock than the general public, speaks volumes about Novell. Regards, Don

To: Bob Howarth who wrote (21645)	4/12/1998 1:35:00 AM
From: Jack Whitley	Respond to of 42771

<<The billion generates 50-60 million a year in cash that can be used to pay software people to develop great products, which is what the company needs to generate great cash flow, which the company should then use to buy back its shares.>> I think stock buy backs can only help shareholders, but Novell's case is special (understatement). I agree with Bob and his paragraph above, except that I would have added the phrase at the start - "In the absence of the ability to count on current operating profits to fund new development". Also, having a war chest "fully funded" is going to make any "copycats" think twice before trying to pilfer code. I don't think that would be the case if Novell was teetering on the edge of insolvency, or appeared to be short on cash, which they are not. jww