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

To: DJBEINO who wrote (22401)	6/1/1998 12:06:00 AM
From: Satellite Mike	Respond to of 42771

It's not too obvious that NOVL is turning things around....and NETWARE is going to boost their sales big-time! Mike

To: DJBEINO who wrote (22401)	6/1/1998 8:25:00 AM
From: Spartex	Read Replies (1) \| Respond to of 42771

DJBEINO: Thanks for the Barron's update on positive earnings estimates changes for NOVL in 1998. I found it interesting that Investor's Business Daily has a more aggressive estimate of 25 cents for 1998, and 7 cents for 3rd quarter. Do you know which estimate is put out by "First Call"? Nonetheless, the various estimates are narrowing between 22 and 25 cents for FY98. Definitely difficult to sort out the primary factors related to Thursdays big NOVL move (volume and price), as there was a multitude of positive news items bombarding the street (Preferred Capital upgrade of NOVL to strong buy, Merrill Lynch reiteration of 2-2 rating, NOVL 1998 earnings estimate upgrade from 20 to 22 cents, Value Line Timeliness rating upgrade from 3 to 2, and Novell's hiring of Mike Sheridan from SUNW). Nice to see they were all on the positive bend during a rather difficult technology market week. Equity markets are still coming to grips with India-Pakistan developments, currency crisis issues in Asia and Russia, and the possibility of further weakening in earning's forecasts during Quarter 2 and beyond. However, would any sane macro-minded person that has an astute knowledge of world economic factors speculate that the Fed board would contemplate a tightening of rates over the next 3-6 months? NOT ! <s> Keep your seat belts fastened and take a conservative approach as we once again go through a few more downdrafts in the upcoming weeks again. Eventually fund managers will get the green light to put all that cash back to work. Regards and still humbly long on NOVL, QuadK