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

To: Paul Fiondella who wrote (22487)	6/5/1998 10:39:00 PM
From: E_K_S	Read Replies (1) \| Respond to of 42771

Hi Paul - One of the strategies Novell used last year in their buy back was by selling naked puts. They ended up loosing big time as the stock dropped well below the exercise price and Novell ended up covering the PUT's for a loss rather than buying the stock (see 1997 annual report losses). This strategy was a result of former CFO Toolon stead. I would hope the buy back would be done through "at market" prices vs. some derivative strategy (like selling PUTs). EKS

To: Paul Fiondella who wrote (22487)	6/6/1998 1:01:00 PM
From: dwight vickers	Read Replies (1) \| Respond to of 42771

Paul, You beat me to it. I remember discussing how they paid so much for buying back their shares last year. Wouldn't be the first time that reported buybacks were used to enrich insiders at shareholders expense. Hope that with a new CEO and CFO we won't have to worry about it. The response to the news was somewhat muted Friday, in my estimation. Also seems to be a concerted effort to upgrade the stock by some small time "Wall Street" outfits. Hope it's coincidental. Dwight