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


To: Exacctnt who wrote (24546)11/25/1998 5:32:00 PM
From: E_K_S  Respond to of 42771
 
Hi Robert - What impact does the re-pricing of the options have on diluted earnings? If these options were repriced, then more of them would be in the money. As part of the re-pricing of these options, did NOVL change the time that they could be exercised?

I am not really concerned that NOVL repriced the employee options, but just curious as to how diluted earnings might be impacted going forward. If the time period was also adjusted, might there be a bigger impact to earnings as (1) these options go more in the money and (2) as employees are able to exercise their options.

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I was surprised to see revenues grow from the recent lows levels but as Elmo pointed out their was a large one time gain reported from a final royalty payment for the the Tuxcedo product. I assume this was from INTS.

Novl is selling at the same price (around $18) almost three years ago and then the street was looking for $1.09 in earnings for the next year. Now, it appears that analysts are raising their estimates to $0.50. I just do not see NOVL going much higher until (1) NetWare revenues grow more and (2) new significant revenue sources are added.

EKS



To: Exacctnt who wrote (24546)11/25/1998 5:55:00 PM
From: Elmo Gregory  Read Replies (2) | Respond to of 42771
 
Hi Robert - The EPS calculation is easier for me to grasp than finding the 21 million retired shares. I don't know how they did it.
Message 6567450
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"...To date, the company spent $245 million to purchase and retire 21 million shares of common stock..."
novell.com
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Regards,

Elmo