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

To: Paul Fiondella who wrote (23039)	7/15/1998 2:56:00 PM
From: DJBEINO	Respond to of 42771

new high 13 1/2 +9/16 (4.35) 13 7/16 (73) 13 1/2 (57) 7,881,600

To: Paul Fiondella who wrote (23039)	7/15/1998 3:01:00 PM
From: DavidG	Read Replies (1) \| Respond to of 42771

Paul, So today the stock runs up based on the substantial number of employees that indicated that they want the stock. I think that is a far stretch for this rally...given 15 million shares traded in two days so far. Now why isn't possible that this is just a breakout based on investors and institutions just recognizing that NOVL has real value here? What will you say when NOVL is in high teens at the end of the year? It may be time for the bears to cover their shorts.<g> DavidG

To: Paul Fiondella who wrote (23039)	7/15/1998 8:28:00 PM
From: p friend	Respond to of 42771

I am no expert. My understanding is that the company does not need to go to the market to purchase the shares for an employee to exercise in a stock option program. The shares are already authorized by the board, but not yet issued. The company just issues new shares to the exercising employee. Often companies suggest that they are using repurchased shares to reduce the dilution from employee option purchases. I seem to recall that Novell has said that they are destroying any shares repurchased through the boards authorized program. If I have it right (help from experts welcome), then the action today would not be related to any employee option exercise opportunities.

To: Paul Fiondella who wrote (23039)	7/15/1998 10:28:00 PM
From: Pruguy	Read Replies (1) \| Respond to of 42771

Are u sure about this Paul? Every quarterly I ever read regarding options are from created shares. This is why they have to be approved by shareholders and why share counts are always rising in tech companies. Incidently, its also why we now report diluted and basic earnings. Diluted represents all the excersibale options, not just those that have been excersised....therefor a company excersising an option is just one sell transaction and a buyer on the other end. not the other way around. that would be a company buying a share and giving to the employee. it doesn't work that way.