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

To: Paul Fiondella who wrote (22233)	5/22/1998 1:44:00 PM
From: Bob Howarth	Read Replies (1) \| Respond to of 42771

There is no gimmick possible to hide a product transition. If customers hold back for Netware 5, but the orders are in for the 4'th quarter, then things will be fine (unless you are day trading). I listened to call (so long!!!!) and noticed that most analysts don't sound very enthusiatic about NOVL. I was surprised that NOVL could not supply more precise numbers on exactly what they are selling, as reflected in the 'We don't know' answers to some of the questions. I guess that if Justice Department stays on track with MSFT (the 200+ days requested by MSFT just happen to allow NT5 release to happen first), Netware 5 gets released, CEO/CIO perception problem gets fixed for major account sales, and NDS really does spawn all kinds of wondeful tools, then NOVL will emerge as a great stock. Sure is a lot to do!!!! Good luck to fellow longs.

To: Paul Fiondella who wrote (22233)	5/22/1998 2:56:00 PM
From: Don Earl	Read Replies (1) \| Respond to of 42771

Hi Paul, If memory serves me correctly from a call to IR, deferred revenues are from service contracts where there is a payment up front, but they don't recognize the income until the service is rendered. If I'm reading it right an increase in deferred revenue would be a plus for forward looking business. All things considered, it was a lot better showing than I expected. Slipping NW5 until August will probably make NOVL dead money this Q. If it weren't for the law suit and a possible restatement of earnings, I'd say things look better than they have for quite awhile. I won't touch it until the accounting questions are cleared up but I do think the longs are entitled to feel a little cheerful over the results. Regards, Don