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

To: Vip who wrote (24142)	11/1/1998 12:32:00 AM
From: Gary Ku	Read Replies (3) \| Respond to of 42771

I share the same concern with you, the insider's heavy selling must be a signal that something bad is going to happen. One thing I figure out is the following: The company paid the executives and employees lots of stock options and cut down cash payment this way they created a few quarters of positive earnings. This few quarters of little positive earnings made lots of people have the impression that the company is turning around. The company then buy back the shares the company executives and employees exercised to keep the number of stock about the same. To the company is concerned, the cash pay out is the same whether you pay them directly with cash or stock options. The only difference is that if they got paid all cash then the earnings will show big negatives, with stock options it shows a few positive quarters's earnings. Even legally they did nothing wrong by dig into this accounting loop hole, but to us, investors, we have to look into this very carefully. Otherwise the shareholder's equity turning to zero, we still don't know it and thought this company is turning around. The only thing we don't know is the company is turning around in which way; good or bad? The company insiders must know more than we do, they sell we have to sell, otherwise we will be really sorry. People may argue that Michael Dell is also selling. But, percentage wise, we can say that he really didn't sell anything at all. If he sold over 90% of his holdings, then we know something definitely is wrong.