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

To: Spartex who wrote (23283)	7/30/1998 2:28:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 42771

Hi Quad-K - Mr. MZIP does raise some valid points that the street is looking for too... "...what is NOVL doing to sustain long term profitability?..." A better question is when will earnings begin to be at 1996 levels and rising. I still remember the earnings forecast of $1.09 for 1998 made in early 1996 by several analysts. New investors are happy to see $0.10 for the quarter. "...What is there long range plan to handle their diminishing market?..." The facts are that Netware user licenses are well below their 1996 levels and have yet to show steady growth (ie. several quarters) from their lows. If you look at Novell's performance over the last two to three years both earnings and Netware sales are significantly lower...these are the facts! Perhaps the tide will turn but it is going to take several positive quarters of solid growth to get back to levels seen in 1996. Schmidt has done a good job so far but we are only in the third inning and a lot of work is still ahead. Still long this stock but keep in mind that it is difficult for a company to stay focused and book solid steady sales and growing earnings for several quarters. Novell's past history has shown how fast a company can loose it when they miss a product transition. EKS