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

To: Gary Ku who wrote (24143)	11/1/1998 12:21:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 42771

Gary - One observation that concerned me was the re-pricing of the employee stock options late last year. If Novell has turned the corner and can begin to grow their revenues, there will be an eventual lid on the stock price until all of these re-priced stock options are exercised. Perhaps what we are beginning to see are the insiders taking advantage of all this "free" money at the expense of the long term shareholders. Our BOD approved this strategy and they can revise future employee option pricing if they feel it is in their best interests. For example, SUNW raised the exercise price that employees can option new stock from $17.50 to $47.50. They continue to provide an incentive for employees to innovate and develop new products but only get rewarded if the stock price increase over time. Therefore, Novell IMO needs to provide employee stock option incentives but not at the expense of the shareholder. I am sure a structure can be implemented that is mutually beneficial to both the employee and the shareholder. From what I can tell, the current program benefits the employees and directors more at this stage in Novell's recovery. As a result we are seeing this with the recent stock sales by the insiders. Perhaps our BOD needs to re-visit the employee stock option plan. This will send a very bullish message to Wall Street. EKS